FY2016 figures - Ferrovial · attend to develop company’s leaders for an innovative culture....
Transcript of FY2016 figures - Ferrovial · attend to develop company’s leaders for an innovative culture....
1
ferrovialGrowing Infrastructure
ferrovial App
January 2018
2
FY2016 figures
TALENT MANAGEMENT: engaged on optimize workforce & develop mobility of talent.
ENGAGEMENT: focus on being an employer of choice in the sector and markets in which it works & promote a flexible work environment.
CULTURE: attend to develop company’s leaders for an innovative culture.
Ferrovial UNIVERSITY
ACKNOWLEDGEMENTSFerrovial has been included in the DJSI (Dow Jones Sustainability Index) for thelast 15 consec years, at a global level; in the FTSE 4Good index for the past 11, inthe Carbon Disclosure Project for the past 5, and is also a member of Stoxx andMSCI Global Sustainability Index.
Ferrovial assumes a firm commitment on emissions reduction and environmentalimpact of their activities. In addition, It also drives generation of new ideas andmodels of business, to offer its clients & users of its assets, innovative solutionswith lower environmental impact.
People EnvironmentTALENT MANAGEMENT, ENGAGEMENT & CULTUREOperating excellence & innovation are possible given Ferrovial employees’talent, high engagement & corporate culture. Over 96.000 people work in theGroup to offer the best solutions in the markets where it operates.
WORKFORCE
Ferrovial has been recognized as Top Employer in Spain for 7 consecutive years
SERVICES81,0%
AIRPORTS0,03%TOLL ROADS0,9%
CONSTRUCTION17,0%
New competences model for 360º performance appraisal.
Implementation of 70/20/10 development model to impulse professionals' improvement.
Meeting point to catalyze learning and knowledge
School that creates a unique leadership model ofcompany to prepare leaders and innovative teamscapable of anticipating new times by acting asinternal references
Forum for exchange that facilitates synergies &global business opportunities
-31,6%REDUCTION OF CO2 EMISSIONS RECYCLED WASTE (t)
-18,1% 2.083.333 -35,4%IN RELATIVE TERMS
(tCO2 eq/€mn) (2009-2016)
IN ABSOLUTE TERMS (2009-2016)
NEW REDUCTION TARGET (2009-2016)
WATER FOOT PRINT• Business Water Index (BWI): 4,146,441. Water
footprint related to water consumption anddischarge carried out in Ferrovial activities.
• Water Treatment Index (WTI): -322,183,025.The impact of the water treatment process ofCadagua and the treatment of leachate inlandfills of Ferrovial Servicios and Amey on thefootprint of Ferrovial.
• Water Access Index (WAI): -413.738; related towater supply projects in Social Action program.
POLAND
3
FY2016 figures
INNOVATION PROCESS
Ferrovial understands innovation as a differential element that allows it to leadthe Infrastructure & Services transformation, offering its clients and userssolutions that contribute in an efficient, sustainable and safe way to the well-beingand progress of society.Priority areas for investigation: cities, innovative construction, toll roads, airports,waste & water revaluation, and their work to develop sustainable solutions,sustainable energy efficiency, contribute to the fight against climate change anddevelop new products.
INNOVATION IN 2016
>100 €48mn5R&D
investment+9% vs 2015
R&D developed projecs
Projects in collaboration with
MIT
DIGITAL HUB PROJECT
Say on payInnovationPRESIDENT & CEO REMMUNERATION
13% 20% 67%VariableFixed Long term incentives
BOARD REMMUNERATION
125% 225%MAXIMUMTARGET
VARIABLE REMUNERATION LONG -TERM REMUNERATION based on delivery of share plans structured into multi-year cycles (3y) overlapping, which turn into shares at the end of the cycle.
Metrics MAX MINEBITDA/avgearning assets(70%)
≥10,5% <9%
Total shareholderreturn (30%)
Amongtop 5
positions
Betweenposition
11th & 18th
Quantitative target metrics45% Net Result40% Cash Flow15% level of compliance with initiatives deriving from strategic plan
Ferrovial compares with IBEX35 members and is in the average compensation of that group
In 2016, a Digital HUB has been created to respond to business opportunities fromthe digital transformation: an environment to investigate the emergingtechnologies’ application such as the Internet of Things, Artificial Intelligence,drones, 3D printing, Customer Experience or Big Data initiatives. Currently they aredeveloping more than 20 projects.
>1,400Ideas presented by FER workers (Zuritanken 2016)
TSR Serco
StrabagSNC-Lavalin
SkanskaAENAACSFCC
EiffageVINCIKIER
AbertisTransurban
Balfour BeattyFraport
ADPFerrovialCarillion
OHL
4
FY2016 figuresCommunity
UNITED NATIONS PARTNER IN SUSTAINABLE DEV’T& MEMBER OF PRIVATE SECTOR ADVISORY GROUP
In its commitment to the scope of Sustainable Development Goals (SDG), Ferrovial actively participates in the community through the development and execution ofsocial programs to significantly improve people's lives. The company has a key role in the social and economic development of the countries where it carries out activities.
COMMUNITY INVESTMENT PROGRAMSSocial InfrastructuresSince 2011, Ferrovial has been working on thisdevelopment cooperation program, which extendsaccess to water for human consumption and basicsanitation among socially vulnerable risk groups inAfrica and Latin America.
Stronger TogetherThis program has been running since 2005 & letsemployees choose social project to contribute amonthly amount that Ferrovial matches, thusdoubling initial donation. In 2016, three projectswere chosen by donating employees.
Community engagement in SpainFerrovial supports refurbishment & reconditioning of offices setup for distributing food & delivering social aid packages tounderprivileged groups. In 2016, Ferrovial provided support withWorld Vision España to improve conditions in 6 food distributioncenters (Madrid, Seville, Mieres, Valencia & Barcelona).
332COMMUNITY SUPPORT PROJECTS
191,769BENEFICIARIES IN WATER AND SANITATION
Social Infrastructures Program: Figures & Impact
142,815 BENEFICIARIES
€1,498,126INVESTED
€497,894INVESTED
31,417BENEFICIARIES
€4,565,595INVESTED
191,769BENEFICIARIES
18PROJECTS
Policy Changes:
10%OF ANNUAL BUDGET for
extension of project
Community Commitment
933,152 m3
RECYCLED WATEROut of which
875,104 m3
TREATED WATER
Ferrovial overview1. Overview2. Main infrastructure assets 3. Construction & Services4. What are investors worried about?5. Looking ahead6. What makes Ferrovial different?
Additional InformationA. Main value driversB. Main infrastructure assets
a. 407ETRb. Managed Lanesc. 407ETR vs Managed Lanesd. Airports
C. Capital Market Day (CMD) 2017 D. Historic data
Table of Contents
6
Solutions to CONGESTION
Narrowing THE GAP betweenpublic budgets & huge infrastructure needs
World leading private infrastructure provider present in toll roads, airports and cities
7
Design Financing OperatingBuilding Maintaining
ConstructionServices
EX-INFRASTRUCTURE PROJECTS
Toll Roads Airports
INFRASTRUCTURE PROJECTS
1. Ferrovial OverviewPresent in the whole value chain of infrastructure
8
1. Ferrovial OverviewCash Flow generation: Balanced Contribution
OPERATING CASH FLOW
Construction
Airports
Toll Roads
Services
FY16 figures
27%
13%
37%
23%
EX-INFRASTRUCTURE PROJECTS
INFRASTRUCTURE PROJECTS
€290mn €134mn
€325mn €342mn
EBITDA
DIVIDENDS€424mn
€667mn
9
TOLL ROADS*
€4,244mn
* €764mn related to NTE 35W & I77, toll roads under construction.
NET CASH €268mn
NET DEBT €4,764mn
INFRASTRUCTURE PROJECTS
EX-INFRASTRUCTURE PROJECTS
9M 2017 figures
ferrovial
Net Cash Position ex-InfrastructureNet Debt ring-fenced to infrastructure assets
NET DEBT €4,496mn
1. Ferrovial OverviewGroup Financial Structure
10
525
18,614
1999 2017
145 120 135 190300
460600
680 730 750 790 845
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
27.0X
6.8x
1999 2016
Tariff freedomTariff flexibility81 years to maturity
CAGR (2006-16)Tariffs EBITDA
+9% +10.8% 100% payback first 10Y
35x
LONG DURATION & PRICING FLEXIBILITY
Canada, Greater Toronto108 kms
Alternatives strongly congestedFast & reliableFree flow, fully electronicStrong collection security
43%, Equity method
DIVIDEND GROWTH (CADmn) LEVERAGE (X EBITDA) EQUITY VALUATION 100% (€mn)
2. Main infrastructure assets407ETR
11
High density population
407
407
Green Belt East extension
Toronto Ring Road 108 km
12
Typical traffic on a Wednesday at 5:20 p.m.
Source: Google
407ETR
407ETR
407ETR
2. Main infrastructure assets407ETR: The only non-congested road to cross Toronto
13
18.9
15.4 15.414.1
11.7
15.6
1.5
7.2
12.6
10.89.7 9.7
10.3
14.2
17.3
13.2
1.0
7.5
5.4
2.9
6.1
0
-1.7
5.5
-0.5
0.6 0.7
3.4 3.34.1
2.81.9
3.1 3.22.6
2.01.2
-2.7
3.4 3.01.9 2.0
2.5
1.2 1.2
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EBITDA growth Traffic growth GDP growth (annual)
2. Main infrastructure assets407ETR: Strong EBITDA growth … even with negative traffic and GDP
14
525
18.614
1999 Dec'17
Strong dividend flowSharp increase in equity valuation
81 years to maturity2098
Analyst valuation up 35x
€mn
CASH GENERATION (1999 – 9M2017) EQUITY VALUATION 100%MATURITY
Cash GenerationInitial equity invest.(62%) -326 mnDividends 1,956 mn10%Disposal 640 mn
NET CASH IN 2,270 mn
35x
2. Main infrastructure assets407ETR: Cash flow and valuation overview
100% pay-back in first 10 years
* Analyst Consensus Valuation
15
Dynamic tollingTariff freedomTariff flexibility
44 years to maturity
LONG DURATION & PRICING FLEXIBILITY
Texas, USA
Higher speed allowedFree flow, fully electronic
No collection risk
Global Consolidation. NTE 57%, LBJ 51%, NTE 35W 54%
27
41
56
9M20
15
9M20
16
9M20
17
42
59
9M20
16
9M20
17
14
1820
9M20
15
9M20
16
9M20
17
2831
9M20
16
9M20
17
+9.8%(vs 9M16)
NTE+10.0%
(vs 9M16)
LBL+35.3%(vs 9M16)
NTE+40.5%
(vs 9M16)
LBJTRANSACTIONS (mn) EBITDA (USDmn)
2. Main infrastructure assetsManaged Lanes
16
A solution to congestion on “existing urban corridors”
Active management of “newly added capacity” through tollingthrough
Free
Lanes
Free
Lanes
Tolled LanesSpeed >50mph
“Express Tollway within an Existing Highway”
2. Main infrastructure assetsManaged Lanes
17
18
Best airport in Western Europe (3rd consec year)
Best airport for shopping (8th consec time)
World’s Best Independent Airport Lounge
Top 3 in passenger satisfaction Europe ranking
81% of pax rating: Excellent/Very good
472,067 annual flights (1,293 a day)183 destinations 82 countries25% UK exports (1.5mn metric tonnes)
Strong traffic performance in 2017+3.1%, 78mn passengers
Operating at over 98% capacity
Runway 3: Gov green light Oct 25th 2016• Parliamentary approval of NPS (2018E)• Secretary of State approval of DCO (2020E)
THE BUSIEST AIRPORT…
63%81%
2007 9M 2017
Punctuality
48%
81%
2007 9M 2017
% Passengers rating Heathrow as Excellent or Very Good
SERVICE STANDARDS STRONG EBITDA GROWTH (£mn)
756885 967
1,132 1,1541,421
1,559 1,605 1,682
2008 2009 2010 2011 2012 2013 2014 2015 2016
… WITH HIGH SERVICE STANDARDS
2008-2016 CAGR : +10.5%
London, UK, Ferrovial stake 25%, Equity methodTime based separation
landing at Heathrow
2. Main infrastructure assetsHeathrow Airport
19
16%
24%34%
7%
19%Spain
Poland
US
UK
RotW
77%
5%9%
9% Civil work
Residential work
Non-residential work
Industrial
By Geography By Work
Proven competitive tool to successful int’l bidding for complex greenfield infra projects
Video on Viaducto de Erques construction
Civil engineering, industrial, building & water projectsComplex projects & broad diversification between sectors
56%
15%
29%F. Agroman
Webber
Budimex
EBITDA 9M17
*Order book compared with December 2016
BUDIMEX: Biggest Polish constructor
WEBBER: Leader in Texas road construction
F. AGROMAN: International strategic markets & Spain
Recurrent cash flow generator with long duration order book, providing long term visibility
Diversified portfolio in public & private sector (maintenance & operation of infra for transport, environment, industry, natural resources and utilities; provision of facility mgmt services)
Video on F. Services
UK: 2017e EBITDA mg target 3-4%
SPAIN: Profitability remains stable
BROADSPECTRUM: A platform to grow in Australia.
INTERNATIONAL: USA, Chile, Poland & Portugal
ORDER BOOK 9M17
16%
46%
33%
4%
INTERNATIONAL
BROADSPECTRUM
SPAIN
UK
EBITDA 9M17
48%
25%
19%
8% UK
SPAIN
BROADSPECTRUM
INTERNATIONAL
By Geography
3. Construction & ServicesConstruction Services
ORDER BOOK 9M17
20
4. What are investors worried about?
Ferrovial looks expensive in multiples
… but cheap in private transactions
Negative reaction to reported results
Growing results in Infrastructure & bottoming out in Contracting
Exposure to UK Services sector … is negligible in valuation
Impact from potential interest rate hike
… is positive. Our assets amplify economic growth
Cash Flow generation vs dividends to shareholders
Growing dividends from infrastructure
21
4. What are investors worried about?Ferrovial looks expensive in multiples
Airports
Toll Roads
Much of our value is in Equity Consolidated assets
407 ETRHeathrowAberdeen, Glasgow & SouthamptonIrish, Portuguese & Greek toll roadsSerranopark, A66
FY16 figures
… but contribute
0% to Revenues &
EBITDA
44%
OCF
VALUE
(€380mn)
64%
22
€944mn €1,727mn
35%
34%
31%
FY16 figures
PROPORTIONAL EBITDAFULLY CONSOLIDATED EBITDA
31% Infrastructure 63% Infrastructure
Services
Reported figures don’t reflect Ferrovial’s Business
Toll Roads ConstructionAirports
4. What are investors worried about?Negative reaction to reported results
17%
20%
32%
32%
23
PROPORTIONAL EBITDAVALUATION
UK Services represents little of our results & valuation
3% of valuation 2% of EBITDADec 2017 2016 Figures
4. What are investors worried about?Exposure to UK Services sector
24
Our assets AMPLIFY ECONOMIC GROWTH
PRICING POWER leads to benefit from better economic conditions
Positive exposure to INFLATION
DERISKING at our US assets should lead to lower discount rates
95% of our infrastructure debt is FIXED, 90% at Consolidated level
We can REFINANCE MANAGED LANES DEBT at better rates
4. What are investors worried about?Impact from potential interest rate hike
25
EBITDA FROM CONTRACTING is bottoming out
GROWING DIVIDENDS from infrastructure projects
4. What are investors worried about?CF Generation vs dividends to shareholders
26
Strong focus on the US transportation infrastructure sector
GreenfieldTraffic Risk
Dynamic tollingHigh Complexity Concessions
Texas, USA
WHAT WE FOCUS ON
Population growthEmployment growth
High household incomeCongestion
Value of time / willingness to pay
WHERE THIS MODEL WORKS
5. Looking ahead
27
PRICING POWER & FLEXIBILITY
VALUE CREATION FROM DERISKING & ROLLING
FORWARD
KNOW HOW IN DEMAND SEGMENTATION
ATTRACTIVE SHAREHOLDER REMUNERATION
UNIQUE TRANSPORTATION INFRASTRUCTURE ASSETS & CAPABILITIES
6. What makes Ferrovial different?
Additional InformationA. Business split vs. valuationB. Main infrastructure assets
a. 407ETRb. Managed Lanesc. 407ETR vs Managed Lanesd. Airports
C. Capital Market Day (CMD) 2017:D. Historic data
29
16% 12% 59% 4%4%5%15% 9% 64% 12%
30% 24% 12% 12% 15% 7%
REVE
NUES
56% 39% 5%
>75% infrastructures
A. Business split vs. valuation
Construction
Airports
Toll RoadsServices
Construction Toll RoadsServices
Infra assets76% of valuation
5% of revenues
USA & Canada59% of valuation
12% of revenues
Infra assets are main value drivers (76%) with limited P&L contribution
Revenues FY2016 results, Valuation December 2017
By GEOGRAPHYBy BUSINESS
VALU
ATIO
N
30
Strong dividends in 2016• €290mn dividends from projects - ETR €244mn
• €113mn invested in new projects
Traffic growth in main markets
New project awarded: I-66 (Virginia, US) • USD3bn managed lane project • 35km along the I-66 corridor• 50 years concession
Mature asset rotation: • Chicago Skyway• Irish toll roads• Portuguese toll roads stake sale (EUR162mn):
• 51% Norte Litoral, April (EUR104mn) • 49% Algarve, September (EUR58mn).
TRAFFIC EVOLUTION (9M17)
DIVIDENDS FROM PROJECTS (€ mn)
Canada407ETR +2.7%
USA NTE +10.2%LBJ +11.0% Ireland
M4+6.1% Portugal
Azores+7.0%
SpainAusol I +9.7%
255267
290
2014 2015 2016
€289mn cash in€124mn net capital gains
Focus on North America (Canada & USA)Unique assets: high complexity, free tolling, dynamic pricing & long term
B. Main Infrastructure AssetsCintra: One of the world leaders in open-competition highway concessions
31
353
985
77%79%
76%
80%82%
83% 83% 83% 83% 84%
87%
2006 2016
456
1,135
2006 2016
81 years to maturity
100% pay-back first 10 years
Free-tariff revision
≅ 9% CAGR 02-15*
* Tariff increase for light Vehicles in Peak hours regular zone (%)
REVENUES
EBITDA
OPEX
CAPITAL EXPENDITURE
DIVIDENDS
Net Debt / EBITDA X
2016 figures
CAGR: 9.5%
CAGR: 3.8%
103
150
2006 2016
CAGR: 10.8%
97 90
38
72 77 8870 74
5570 72
145 120 135 190300
460600
680 730 750 790
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
27.0X
6.8x
1999 2016
B. Main Infrastructure Assets407ETR: Financial Overview ($CAD million)
32
Perfect locationExcellent prospects for business growth
Sources:- Planning for Prosperity – November 2015 - (Globalization, Competitiveness and the Growth Plan for the Greater Golden Horseshoe) . Neptis Foundation.- No shortage of land for homes in the Greater Toronto and Hamilton Area – October 2016 – Land supply for future urban development designated by municipalities across the Greater
Golden Horseshoe to accommodate growth to 2031. Neptis Foundation.- Statistics Canada
GTA POPULATION4.5 mn
POPULATION EMPLOYMENT MEGAZONES
YESTERDAY
B. Main Infrastructure Assets407ETR: Reasons for 407 ETR’s success
33
Perfect locationExcellent prospects for business growth
POPULATION AREA URBANIZEDBETWEEN 2006 & 2016
EMPLOYMENT MEGAZONES
407 avg PK hour speed : 100 Kph401 avg PK hour speed : 20 Kph
GTA POPULATION6.5mn
+44% vs 1996
TODAY
B. Main Infrastructure Assets407ETR: Reasons for 407 ETR’s success
34
407ETR Regions includes: Toronto, Durham, Peel, Halton & YorkSource: Government of Ontario Places to Grow
POPULATION GROWTH (2021 – 2041)EMPLOYMENT GROWTH (2021 – 2041)
Future growth in population & employment to support traffic
TOMORROW
B. Main Infrastructure Assets407ETR: Reasons for 407 ETR’s success
35
407ETR Managed Lanes (NTE1-2)• 62.97%. Global consolidation• Meridiam (37%)• 52 years
Opened October 2014 (44 years remaining)
• Dallas-Fort Worth Metroplex, between Fort Worth & DFW Airport • 13 miles. 2 segments.
2 lanes per directionTollway within a freeway
• Predictability & reliable travel times (minimum speed 50m/hr)Higher speed allowed on NTE (60mph in free lanes, 70mph NTE)Safety & comfort
• Yes. No toll booths, fully electronic, free flow system• Freedom to set tariffs up to cap ($0.84, updated with inflation)
Cap is lifted if av. speed <50m/hr of cars >3,300pce/h (2 lanes)Dynamic tolling (tariffs can be changed every 5 minutes) Different tariffs depending on segment, direction, time, day..
• Not a regulated activity, but a contractual agreement• From TxDOT (who charges the drivers). No collection risk
• 5 initial years lock-up
• 43%. Equity consolidated• SNC Lavalin (17%), CPPIB (40%)• 99 years
Opened 1999 (81 years remaining)
• Greater Toronto Area (Ontario province)• 108kms. 24 segments
From 2+2 lanes up to 5+5 lanes per direction (dep on segment)Separate toll road
• Predictability & reliable travel timesAlternative routes are highly congestedAverage speed: 100km/h vs 40km/h on the alternativeSafety & comfort
• Yes. No toll booths, fully electronic, free flow system• Freedom to set tariffs
Penalty paid if traffic falls below thresholdTariffs can be changed every 30 daysDifferent tariffs depending on segment, direction, time, day..
• Not a regulated activity, but a contractual agreement• From drivers. Licence plate not renewed if tolls not paid.
• Strong growth (from CAD85mn 2005 to 750mn 2015)
Participation:Partners:Concession period:
Location:Length:
Benefits:
Open tolling?Tariff Policy:
Regulatory risk?Collection:
Dividends:
B. Main Infrastructure Assets407ETR vs Managed Lanes
36
Toll Rate Cap 0.75 c/mi
Demand threshold 3300 pce/h2-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 12:00Hour startingAnalysis by segment and direction
Freedom under the cap TOTAL FREEDOM Freedom under the cap
Speed
Demand
Toll Rate
0.87 $/mi
B. Main Infrastructure AssetsManaged Lanes: Toll rates – tariff threshold
37
• 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 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.
21%
51%
28%
25%
56%
18%
Figures in US Dollars
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 mn
242 mn (57%)141 mn (33%)43 mn (10%)
1,048 mn
398 mn650 mn
573 mn
2.62 bn
672 mn
343 mn (51%)107 mn (16%)
44 mn (7%)178 mn (26%)
1,456 mn
606mn850 mn
490 mn
1.36 bn
430 mn
231 mn (54%)75 mn (18%)
124 mn (29%)
805 mn
274 mn531mn
126 mn
Total Investment:
Private Equity:
Cintra: Meridiam: DPFPS:APG:
Total Debt:
PABs:TIFIA:
Public Funds:
Financial structure
* In September 2017, Cintra, along with the other Managed Lanes partners (Meridiam and APG) has acquired DPFPS’s stake in NTE (10%) and LBJ (7%).Cintra acquired 6.3% in NTE and 3.6% in LBJ, and now holds 62.97% in NTE and 54.6% in LBJ
B. Main Infrastructure AssetsManaged Lanes: Financial Overview
38
SPEEDS AT NTE
GROWTH SINCE OPENING (NTE)
TOLL RATES EVOLUTION (NTE)
GROWTH SINCE OPENING (LBJ)
Eastbound workday on segment 2
CAP linked to inflation
2016 avg toll rate per transaction: ~USD3.05
Index 100100
150
200
250
300
350
400
4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17
Revenue Txns Rev/Txn
100
120
140
160
180
200
220
240
4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17Transactions Revenue Rev/Txn
12am 3am 6am 9am 12pm 3pm 6pm 9pm
2014 2015 2016 Cap
0
10
20
30
40
50
60
70
80
12am 3am 6am 9am 12pm 3pm 6pm 9pm
2011 2016 Non-Tolled Lanes2016 TEXpress Lanes
+18.2%
B. Main Infrastructure AssetsManaged Lanes
39
CINTRA MERIDIAM
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 (since 2009)
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
EQUITY DEBT PUBLIC FUNDS
Opened on October 2014, 9 months ahead of schedule
KEY CHARACTERISTICS
SHAREHOLDER STRUCTURE
FINANCIAL STRUCTURE
63% 37%
21% 52% 27%
B. Main Infrastructure AssetsManaged Lanes: North Tarrant Express
40
CINTRA MERIDIAM
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 (since 2009)
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
For further information on the concession, check the following links:https://youtu.be/9GMj3H5OovAhttps://youtu.be/pnNFZ8qJY-c
EQUITY DEBT PUBLIC FUNDS
APG
55% 28% 17%
24% 56% 19%
SHAREHOLDER STRUCTURE
FINANCIAL STRUCTURE
KEY CHARACTERISTICS
Opened on September 10th 2015, 3 months ahead of schedule
B. Main Infrastructure AssetsManaged Lanes: Lyndon B Johnson
41
32% 59% 9%
54% 29% 18%
CINTRA MERIDIAM
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 (since 2013)
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 EQUITY DEBT PUBLIC FUNDS
APG
SHAREHOLDER STRUCTURE
FINANCIAL STRUCTURE
KEY CHARACTERISTICS
Expected to open in 2H’2018
B. Main Infrastructure AssetsManaged Lanes: North Tarrant Express 35W
42
HAH
100% GBP mn
+25% dividend in 9M17 (to GBP281mn)
RAB: positive impact from higher inflation
Traffic: +3.1% 2017 (14 consec monthly records)
EBITDA +5.8%, & 62.4% EBITDA mg (60.9% in 9M16).
(Equity method, FERROVIAL stake 25%)
AGS paid GBP112mn (9M17, incl. GBP75mn in extraorddividends after its refinancing).
Traffic +5.7% in 9M16 (11.6mn pax.):
EBITDA +15%, on traffic growth and greater cost control
Regional UK Airports(Equity method, FERROVIAL stake 50%)
*RAB: Regulated Asset Base
85Countries
25%Transfer
Share
3.1%Growth
93%Int’l
474kFlights78.0m
Passengers
204Destinations
9M17 Var.
Glasgow 7.7 +6.7%
Aberdeen 2.4 +1.1%
Southampton 1.6 +8.0%
Total AGS 11.6 +5.7%
Revenues EBITDA EBITDA %9M17 Var. 9M17 Var. 9M17
Total AGS 159 +7.2% 71 +15.0% 44.9%Glasgow 93 +10.2% 45 +15.9% 48.9%Aberdeen 42 -1.7% 17 +5.0% 39.9%Southampton 24 +13.1% 9 +32.6% 38.7%
HAH P&L 9M17 Var.Revenues 2,161 +3.2%EBITDA 1,348 +5.8%EBITDA % 62.4%Net debt 14,051 -1.8%
B. Main Infrastructure AssetsAirports
43
REAL GDPNOMINAL INTEREST
RATESPRICES
(INFLATION)
TARIFFS
+ VALUE
VKT
+ VALUE
COST OF CAPITAL
- VALUE
“DISCOUNT RATE EFFECT”
EXCHANGERATE
+ VALUE
“CASH FLOWS EFFECT”
Sources: Paper of professor Carles Vergara-Alert
WHICH IS THE PREVAILING EFFECT…
AND HOW DOES IT AFFECT INFRA-ASSETS VALUE, ESPECIALLY 407 ETR & MLS?
REAL INTEREST
RATES
Central bank increases the nominal interest rate to meet
its target real interest rate (Taylor rule)
Output gapDemand and inelastic
supplyMonetary policy
C. CMD 2017: Interest & FX rate risksWhat the economic theory says…
44
Widespread belief among investors that “an increase in interest rates reduces the value of the infra-asset”.
In other words “INFRASTRUCTURE ARE BOND-LIKE ASSETS”
KEY CONCEPT VARIABILITY IN CASH FLOWSOn what variables does revenue depend?How are these variables affected by interest rates?
Sources: Paper of professor Carles Vergara-Alert
Bond: A string of future fixed set of payments
0.03 0.035 0.04 0.045 0.05 0.055 0.06 0.065 0.07 0.075 0.08 0.085 0.09 0.095 0.1 0.105 0.11
Duration
(Price/yield curve)VALUE
Ke7.5% 8% 8.5% 9% 9.5% 10% 10.5%4% 4.5% 5% 5.5% 6% 6.5% 7%
Valuation @ current constant cash flows
Infra asset: A string of future variable set of cash-flows
but…
-
C. CMD 2017: Interest & FX rate risksInterest Rate Risk Infra-Asset Valuation
45
WITH TRAFFIC RISK (TOLL ROADS)3. - Pre-fixed toll rate (CPI escalated) AUSOL (Spain) CF= (CPI, traffic)
4. - Tolls escalated to a maximum (GDP per capita) “Chicago Skyway”, ITR (USA) CF= (CPI, traffic, GDP per capita)
5. - Free-rate tolling mechanism 407 ETR (Canada), ML (USA) CF= (CPI, traffic, willingness to pay)
WITHOUT TRAFFIC RISK (NON-TOLL ROADS)1. - Availability payment (no CPI adjusted) Towoomba (Australia) CF=K
2. - Availability payment (CPI adjusted) Norte Litoral ( Portugal) CF= (CPI)
“INTEREST RISK METER OF CONCESSION VALUE”
Sources: Paper of professor Carles Vergara-Alert
High Mid Low Very Low None
1 2 3 4 5
94%Cintra´s
Value
C. CMD 2017: Interest & FX rate risksCategories of infra-assets as per variability of cash flows
46
1 Assumptions of the exercise: 100 “currency units” of investment, 50 years concession, Beta=1.0, ERP=5%, Leverage = 50%, Debt premium = 4.0%, Tax rate 30%.
Valu
e
Project i.e.: TOOWOOMBA
Significant value decrease
(Bond proxy)
0%Cintra´s Value
1
RISK FREE RATE
Project i.e: AUSOL
3%Cintra´s Value
Stablevalue
3
Valu
e
RISK FREE RATE
Project i.e.: NORTE LITORAL
3%Cintra´s Value
Slight value decrease
2
Valu
e
RISK FREE RATE
Project i.e: CHICAGO SKYWAY
0%Cintra´s Value
Modest value increase
4
Valu
e
RISK FREE RATE
-Capture consumer’s surplus generated by CPI/GDP per capita
-Inability to capture “optimal price”
Sources: Paper of professor Carles Vergara-Alert
AVAILABILITY
AVAILABILITY & CPI Adj
DEMAND RISK & CPI Adj
DEMAND RISK & CPI, GDP Adj
C. CMD 2017: Interest & FX rate risksEffect of interest rates on asset valuation by category1 (I)
47
RISK FREE RATE
Valu
e
TARIFFS - Maximum discretional adjustment- Ability to capture the consumer’s surplus
generated by higher willingness-to-pay
PROJECT I.E.: 407 ETR
Optimal price Sub-optimal price
94%Cintra´s Value
TRAFFIC - Traffic ( VKT ) increases when the real GDP increases
5th category is the only one that: - Is able to reach “optimal tariffs” and to extract full value from a rise
of interest rates- Has a “cash flow effect” much higher than the “discount effect”
Sources: Paper of profesor Carles Vergara-Alert
Demand risk & Total free-rate tolling
THE EXCHANGE RATE OPERATES AS BONUS EFFECT IN OUR CANADIAN-US ASSET’S VALUE:− Short-term: next 18-24 month of dividends fully hedged− Long-term: from a € based investor, US and Canada provided a better future economic outlook, that will lead us to a likely
revaluation
5
C. CMD 2017: Interest & FX rate risksEffect of interest rates on asset valuation by category (II)
48
NOT CPI INDEXED(i.e. Toowoomba)
HIGH COMPLEXITY
LOW COMPLEXITY
From value to standpoint … very different “animals” fall within the CATEGORY OF “HIGHWAY CONCESSION”
AVAILABILITY PAYMENT PROJECTS DEMAND RISK PROJECTS
CPI INDEXED(i.e. Norte Litoral)
CPI INDEXED TARIFFS(i.e. Ausol)
TARIFFS LINKED TO REAL ECONOMY
GROWTH(i.e. Chicago Skyway)
FREE TARIFF FLOW(i.e. 407 ETR & MLs)
(1) After 10 years of operation, if currently expected CF´s are met(2) Ferrovial price per share impact: value generated / Ferrovial number of shares as of 31.12.16 (732.5M)
Sources: Cintra Infraestructures, S.E.
VERY HIGH UPSIDE OF UNTAPPED VALUE
Long remaining concession periods, back-ended CF’s with high expected bid IRRs
• 407 ETR in 10 years (1) 1.6x Value at Present +7 €/ Fer. Sh(2)
• ML’s in 10 years (1) 5.5x Equity Committed 11 € / Fer. Sh(2)
FOCUSED ON HIGH COMPLEXITY CONCESSIONS
MOST of Cintra portfolio
• In terms of Equity Value: 94%
• In terms of Equity Committed: 74%
C. CMD 2017: Different Concessions Models
49
LOW COMPLEXITY CONCESSIONAVAILABILITY PAYMENT CPI INDEXED
Long concession term (99 years)
THE BID IRR: the higher the Bid IRR, the larger
the room to reduce the rate of discount
THE CONCESION TERM: the longer the term, the
higher the value produced by late cash flows with
almost no value at present
THE CASH FLOW PROFILE: the more back
ended, the higher the value produced by late very
high cash flows with almost no value at present
Low Bid IRR(11%)
Front ended CF’s (Low rev CAGR (2%))
Short concession term (25 years)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039
…
HIGH COMPLEXITY CONCESSION407 ETR TYPE
…
WHAT MAKES THE CF STREAM PROFILE MORE BACK ENDED?
1. HIGHER TRAFFIC GROWTHS: - better regional economic growth rates- lower relative size of toll roads vs free alternative
2. HIGHER TARIFF GROWHTS: - higher willingness to pay (increased with congestion levels and disposable income)
High Bid IRR(15%)
Back ended CF’s (High rev CAGR (6%))
Sources: Cintra Infraestructures, S.E. analysis
O&M + Capex + Tax
Debt Service
Equity distributions
Revenues + ReserveAccounts releases
C. CMD 2017: Different Concessions ModelsWhat makes the difference?
50
A HIGHWAY CONCESSION: a contractually defined set of rights and obligations with regards to vehicles moving in a certain route during a period of time
Basic Rights: collect tolls (or other payments) Basic Obligations
− Design and build the highway (construction phase)− Ensure safe trips (operation phase): design, build, finance, operate and maintain
FINANCIALLY: string of cash flows that reflect annual monetary value of contractual rights net of obligations
Price paid for these cash flows at the initial moment is determined by the bidding IRR and their expected values
The premium (over the RFR) of this IRR reflects the risks of the project undertaken by the sponsors If the concession is tendered under perfect competition, price paid equals value acquired: no value is
created nor destroyed at this specific moment
THEN… WHAT HAVE WE CREATED?
A potential value that sponsors will progressively crystallize in the future
C. CMD 2017: Highway Concession Business Value CreationHow does the highway concession business create value for shareholders?
51
THE NORMAL WAY: meeting expected cash flows as we put risks behind, that is, DE-RISKING or reducing the market discount rate of the business as projects mature
AN IMPORTANT “NICE TO HAVE”: cash flow outperforming original expectations Main objective of an operator: managing the asset to maximize cash flows: that is optimizing the asset through Premium
Operation ) This is, not the primary source of value for shareholders in concessions won under competition
Risks
Disc.Rate
CONSTRUCTION
Design & ConstructionCost environmental, RoW
Traffic / RevenueInitial traffic, ramp up, long
term variationsFinancial Closing
Operation MaintenanceInterest Rates
10% - 15%
RAMP-UP
--
Traffic / RevenueRamp up, long term variations
RefinancingOperation Maintenance
Interest Rates
8% - 13%
GROWTH / MATURITY
--
Traffic / RevenueLong term variations
-Operation Maintenance
-
4% - 8%
RISK
CONCESSION TERM
Sources: Cintra Infraestructures, S.E.
C. CMD 2017: Highway Concession Business Value CreationHow do sponsors create value?
52
VALU
E*
* NPV of remaining cash flowCONCESSION TERM
186
812
1,058
1,426
1,662
1,702
1,296
Const. end@12%
Yr 15@7%
Yr 20@6%
Yr 30@5%
Yr 40@4%
Yr 47
THE ROLLING FORWARD EFFECT: progressive increase of value as we get closer to back ended cash flows
Sources: Cintra Infraestructures, S.E.
VALUE CREATION: DERISKING & ROLLING FORWARD
€100M invested in one of our ML’s
C. CMD 2017: Highway Concession Business Value CreationHow do sponsors create value?
53
Income Statement Revenues
EBITDA
Operating Indicators
€ million
FY16 FY15 Var % LfLConstruction 4,194 4,287 -2.2% -2.7%
Airports 4 8 -49.9% -68.6%
Toll Roads 486 513 -5.3% 24.8%
Services 6,078 4,897 24.1% 2.8%
Other -4 -6 n.a. n.a.
Total 10,759 9,701 10.9% 1.2%
FY16 FY15 Var % LfLConstruction 342 393 -13.1% -12.8%
Airports -18 -13 -45.7% -54.7%
Toll Roads 297 333 -10.8% 24.9%
Services 325 312 4.2% -12.9%
Other -2 1 n.a. n.a.
Total 944 1,027 -8.1% -4.0%
FY16 2015 Var %Construction Backlog 9,088 8,731 4.1%
Services Backlog inc.JVs 24,431 22,800 7.2%
Traffic evolution FY16 FY15 Var % ETR 407 (Kms 000) 2,640,770 2,517,214 4.9%
NTE (IMD) 30,485 25,553 19.3%
LBJ (IMD) 31,582 12,861 145.6%
Ausol I (IMD) 14,637 13,165 11.2%
Heathrow (Mn pax) 75.7 75.0 1.0%
AGS (Mn pax) 14.4 14.0 2.8%
FY16 FY15 Var % LfL
Revenues 10,759 9,701 10.9% 1.2%
EBITDA 944 1,027 -8.1% -4.0%
EBITDA margin 8.8% 10.6%
Period depreciation 342 256
EBIT 602 770 -21.9% -9.7%
EBIT margin 5.6% 7.9%
Disposals & Impairments 324 131
Financial results -391 -637
Equity-accounted affiliates 82 312
EBT 617 577
Corporate income tax -233 54
CONSOLIDATED NET INCOME 383 631
Discontinued operations 0 0
Minorities -7 89
NET INCOME ATTRIBUTED 376 720 -47.7%
D. Historical dataFY16 Results
54
Operating CF ex-infra projects (before tax.)
EBITDA & Margins
• Net cash at parent company
• Net debt at infra projects level (non recourse to parent company)
Revenues
Net debt
OCF ex-infra ND
-6,595 -7,015 -7,862 -6,057-4,963
1,489 1,663 1,632 1,514 697
2012 2013 2014 2015 2016
N. CASH EX-INFRA
INFRA PROJ.
7.686 8.166 8.8029.701 10.759
38% 32% 31% 28% 24%
62% 68% 69% 72% 76%
2012 2013 2014 2015 2016
Dom estic International
927 934 983 1,027 944
12.1%11.4%
11.2%10.6%
8.8%
7 .0 %
8 .0 %
9 .0 %
1 0. 0%
1 1. 0%
1 2. 0%
0
2 00
4 00
6 00
8 00
1 ,0 00
1 ,2 00
2012 2013 2014 2015 2016
EBITDA Margin
-16 -27 -58 -70 -69
365 461 596399 424
591663 538
560 640
2012 2013 2014 2015 2016
Op. CF (Construction& Services)
Dividens from infra(Toll roads & Airports)
Holding & Others
Op. CF:Construction 100 304 236 272 245Services 491 359 302 289 395
Dividends:Toll Roads 220 242 255 267 290Airports 145 219 341 132 134
Holding & Others -16 -27 -58 -70 -69
939 1,097 1,076 889 995 -5,106 -5,352 -6,230 -4,542 -4,266
D. Historical dataHistoric consolidated figures: 2012-2016
€ million
55
2016
2016
Operating & investment CF (ex-projects)
Backlog
Revenues
EBITDA & Margins
100
304236
272245
2012 2013 2014 2015 2016
4.326 4.064 3.942 4.287 4.194
53% 56% 54% 56% 53%
33%27% 29% 29% 30%
14%17% 17%
15% 17%
2012 2013 2014 2015 2016
*F.Agroma n Budimex Webber
337 343 349393
342
7,8%8,4% 8,8% 9,2%
8,1%
0 ,0 %
1 ,0 %
2 ,0 %
3 ,0 %
4 ,0 %
5 ,0 %
6 ,0 %
7 ,0 %
8 ,0 %
9 ,0 %
1 0, 0%
0
5 0
1 00
1 50
2 00
2 50
3 00
3 50
4 00
2012 2013 2014 2015 2016
EBITDAMargin
17% 83%Dom estic
International
OCF ex-infra(before tax)
EBITDA Margin
*F.Agroman 11,1% 11,9% 11,1% 9,8% 8,4%
Budimex 4,0% 4,1% 4,8% 5,6% 8,7%
Webber 3,9% 3,9% 8,7% 13,8% 6,2% 2016
8.6997.867 8.091 8.731 9.088
71% 73% 71%67% 66%
14% 13% 18% 23% 22%15%
14% 11%11% 12%
2012 2013 2014 2015 2016
*F.Agroma n Budimex Webber
*”Ferrovial Agroman” unit was created in 2013, previously, “Other markets” was the relevant unit.
EBITDA ex-project 324 329 335 380 329Working Capital & others -223 -25 -99 -109 -87
Operating Cash Flow (b. tax.) 100 304 236 272 245Investment Cash Flow -26 25 -32 -30 -74
5% 18% 81%ResidentialIndustrial ~ & OtherCivil work
17% 83% Dom esticInternational
D. Historical dataConstruction figures: 2012-2016
€ million
56
Operating & investment CF (ex-projects)
Backlog with JV’s
Revenues
EBITDA & Margins
2016
491359
302289
395
2012 2013 2014 2015 2016
2,9513,656
4,4014,897
6,078
49% 39% 36% 34% 29%
51% 59% 62%63%
45%
24%
2012 2013 2014 2015 2016
Spain UK Broadspect rum International
314 322387
312 325
10.6%8.8% 8.8%
6.4%5.4%
0 .0 %
1 .0 %
2 .0 %
3 .0 %
4 .0 %
5 .0 %
6 .0 %
7 .0 %
8 .0 %
9 .0 %
1 0. 0%
1 1. 0%
1 2. 0%
0
5 0
1 00
1 50
2 00
2 50
3 00
3 50
4 00
2012 2013 2014 2015 2016
EBITDAMargin 12,784
17,74922,369 22,800 24,431
50% 56%63% 68%
72%44%
36%
30% 27%24%
25%
2012 2013 2014 2015 2016
UK España Broadspectrum Internac ional
Services backlog includes JV’s from 2014 to 2015.
34% 66% Dom estic
International
OCF ex-infra(before tax)
EBITDA ex-project 273 264 321 237 241Dividends received 22 28 19 78 49
Working Capital & others 195 67 -38 -27 106
Operating Cash Flow (b. tax.) 491 359 302 289 395Investment Cash Flow -108 -528 -92 -207 -658
EBITDA Margin
España 13.4% 12.4% 10.7% 10.7% 10.7%
UK 7.9% 6.3% 7.7% 3.9% 1.5%
D. Historical dataServices figures: 2012-2016
€ million
57
1,894 km
27 concessions
10 countries
(Km’s)
Dividends received Managed Investment
Concession lengthYears to maturity
198 217 224 242 244
2225 31 25 46220
242 255 267290
2012 2013 2014 2015 2016
407-ETR Others
44%
21%
8%
7%
13%
7%
USA
Canada
Spain
UK & Ireland
Rest od Europe
Rest of World
81
44 4429
19 13 14 16
407-
ETR
NTE
LBJ
Auso
l I
Aute
ma
Alga
rve
Nort
e-Li
tora
l
M4
108
21 27
83
48
130 119
36
407-
ETR
NTE
LBJ
Auso
l I
Aute
ma
Alga
rve
Nort
e-Li
tora
l
M4
Years
D. Historical dataToll roads figures: 2012-2016
€ million
58
mn €Dividends received from airports
Heathrow (25% stake)
2 runways183 destinations82 Countries80 Airlines
*AGS (50% stake)
AberdeenGlasgowSouthampton
Traffic mn passengers HAH EBITDA (mn £)
Heathrow shareholdersPortfolio Heathrow
*Ferrovial increased its stake in AGS from 25% (held through HAH) to 50% in 2014.
Capital expenditure (mn £)
Ferrovial Qatar Brittania GIC CICAlinda USS
95 96
38 38
145
219
341
132 134
2012 2013 2014 2015 2016
AGS
HA H
1,1411,283
853
627674
2012 2013 2014 2015 2016
1.3551.441 1.541 1.608
1.683
2012 2013 2014 2015 2016
25% 20% 12.6% 11.2% 11.2% 10% 10%
2012 2013 2014 2015 2016
Heathrow 70.0 72.3 73.4 75.0 75.7AGS 12.3 12.6 13.3 14.0 14.4
Glasgow 7.2 7.4 7.7 8.7 9.4
Aberdeen 3.4 3.5 3.8 3.5 3.1
Southampton 1.7 1.7 1.8 1.8 2.0
D. Historical dataAirports figures: 2012-2016
59
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.