That is a 43.5% increase, excluding the extraordinary gains from the Cintra IPO in 2004
EBITDA increased by 22.1% to 1,301.1 million euro:
EBIT amounted to 871.3 million euro, 21.6% more than in 2004
Consolidated revenues totalled 8.989.1 million euro (+24%):
- EBITDA from the more recurring businesses (Infrastructure and Services) increased by 31% and now represent 63% of the total
- EBITDA outside Spain rose by 30% and represented 47% of the total
Growth is assured by the backlogs: the Construction backlog increased by 11.7% (7,500 million euro); Real Estate by 8.6% (1,085 million euro), and Services by 44.3% (7,174 million euro). Positive performance by traffic (toll roads and airports) and parking spaces (+14.8%)
Capital expenditure amounted to 1,664.6 million euro and was allocated mainly to the Services and Infrastructure divisions
Funds from operations totalled 1,150.5 million euro (+77%), maintaining the company's investment capacity intact, and leverage is 9%
- foreign revenues increased by 45.3% to 3,980 million euro and account for 43% of the total
- all areas expanded rapidly: Construction (+22.4%), Infrastructure (+23.8%), Real Estate (+5.9%) and Services (+30.9%)
Strong growth in all business areas, steady diversification into recurring activities, and a greater international presence were the highlights of a period
Ferrovial ended 2005 with considerable growth in all its business areas; it increased diversification into recurring businesses (Services and Infrastructure) and expanded internationally in a year characterised by investments (1,664.6 million euro) and sizeable cash flow from operations (1,150.5 million euro) while maintaining its investment capacity intact, with leverage at 9%.
As a result, Ferrovial obtained 415.8 million euro in net profit in 2005, 21.3% lower than in 2004, when profit included the extraordinary gains from the Cintra IPO. Excluding this effect, net profit grow 43.5%.
EBITDA increased 22.1% to 1.301.1 million euro, boosted by all business areas, mainly the more recurring activities (Services and Infrastructure), which grew by 31% and now account for 63% of the total. Businesses outside Spain expanded 30% year-on-year and represented 47% of the total.
EBIT increased by 21.6% to 871.3 million euro.
Revenues totalled 8,989.1 million euro, 23.9% more than in 2004: Construction expanded 22.4% due to good performance in Spain and other countries, including three months' revenues of Texan company Webber; Services (+30.9%) due to strong organic growth both in Spain and abroad and the addition of an extra 33% of Tube Lines and of Swissport (three months); Infrastructure (23.8%) reflected good performance by road and airport traffic and the entry into service of two new toll roads; and Real Estate (+5.9%).
International revenues amounted to 3,890 million euro (a 45.3% increase) and represented 43% of the company's total revenues. The foreign countries making the greatest contribution to group revenues were the UK (20%), Poland (8%), rest of Europe (Ireland, Portugal and Italy: 7%) and North America (Canada and the US: 5%).
1,665 million euro invested, with investment capacity intact and 1,150 million euro in funds from operations
In 2005, Ferrovial invested 1,664.6 million euro, its largest figure ever. Investments in 2005 were allocated to acquiring Texan company Webber (179 million euro) and of heavy machinery (tunnel-boring machines); other investments included notably the Chicago Skyway (375 million euro), in the Infrastructure division, and, in Services, the acquisition of an additional 33% of the London Underground concession company (137.8 million euro) and handling company Swissport (641.1 million euro, including 302.6 million euro in debt). Additionally, Ferrovial bought land worth 339.3 million euro (+60%) for development. The main divestment was the stake (9.59%) in telecommunications operator Ono (145 million euro).
Despite those sizeable investments, the company ended the year with a 271.8 million euro of net debt, i.e. 9% leverage, and its investment capability intact. In 2005, Ferrovial obtained 1,150.5 million euro in funds from operations net of taxes (a 77% increase on 2004), with contributions from all business areas, notably Construction (501.8 million euro) and Infrastructure and Services (583.7 million euro, 50% of the total).
Construction: markets boomed, the backlog increased, and Ferrovial entered the USA
Strong growth in construction revenues, which rose 22.4% to 4,387.3 million euro, was due mainly to the intense pace of production in Spain and rapid growth in other countries, where construction activity expanded 49.5% to account for 29% of total division revenues. This performance was due to execution of projects in Ireland, Portugal and Chile, to 37.8% revenue growth at Polish subsidiary Budimex, and to first-time consolidation of the Texan Webber group from 15 September 2005.
Construction EBITDA increased by 7.3% to 314.5 million euro.
The construction backlog increased by 11.6% to 7,500 million euro at the end of 2005, equivalent to 20 months' work.
Infrastructure: growth in traffic and margins, recovery of 44% of the investment in Chicago Skyway, and a stronger position in the USA
Revenues in the Infrastructure division, which comprises toll roads, airports and car parks, increased by 23.8% to 760.3 million euro, driven principally by good performance by the toll roads and airports, and the entry into operation of Chicago Skyway and the Radial 4 road (Madrid).
EBITDA in Infrastructure increased by 24.9% to 479.5 million euro, and the EBITDA margin reached 63.1%.
Good traffic performance on the main roads boosted toll road revenues by 27% to 579.4 million euro and EBIT by 28.4% to 422.2 million euro. 407 ETR made a significant contribution: EBITDA rose by 23.3% on 18.3% growth in revenues, and traffic increased (in terms of both the number of vehicles and the average distance travelled) despite a 7.2% increase in peak tolls in 2005. Since tolls were deregulated on the 407 ETR in 2003, they have been increased by 30%, while vehicle kilometres travelled (VKT) have risen by 14%. The latest toll increase (peak hour +8.7%) was implemented in February 2006.
The group began operating its first toll road in the US, the Chicago Skyway, on 24 January 2005; eight months later, it recouped 44% (206 million USD) of its initial investment in the road by completing a 1.55 billion USD refinancing deal. The operation improved shareholder IRR (internal rate of return) by over 150 basis points. The refinancing deal included placing a 1.4 billion USD bond in the US, the largest-ever toll road bond issue in that country.
The Infrastructure division continued to bid for a large number of projects and obtained four awards (three pending final decision) representing a total investment of 4,700 million euro in Spain (Autopista M-203), Ireland (M3), Italy (Cremona-Mantua) and the USA (Indiana) the latter in January 2006.
Car park revenues increased significantly (18.2%) to 119.9 million euro and the number of managed parking spaces reached 238,200 in the period (a 14.8% increase). EBITDA increased strongly, by 25.6%, to 41.7 million euro, and the EBITDA margin improved to 34.8%.
The improvement in the airport business (revenues +9.7% and EBITDA +5.2%) was due mainly to strong growth in traffic: Sydney +4%, Bristol +12% and Belfast +7%.
The refinancing of Bristol Airport was completed in May with a credit line of 515 million GBP (770 million euro). This refinancing operation enabled the airport to pay an extraordinary 88 million euro dividend; added to the dividends it paid in previous years, this means that 180% of the initial capital investment in 2001 has been recovered.
The Real Estate backlog (over 1,000 million euro) guarantees 16 months' sales
Ferrovial's Real Estate division increased revenues by 6% to 813.6 million euro, boosted by the sale of land. EBITDA increased by 13.3% to 169.4 million euro and the EBITDA margin climbed to 20.8%.
Pre-sales in the year increased by 13.5% and the real estate backlog rose 8.6% to 1,085 million euro, guaranteeing sales for approximately 16 months.
The realty brokerage business, conducted through Don Piso, increased revenues by 10% to 119.7 million euro.
Services: second-largest contributor to revenues and earnings, and entry into the handling business
The Services area has established itself as the group's second-largest generator of revenues (35.6% of the total) and EBITDA (26% of the total).
In 2005, the division expanded revenues by 30.9% to 3,200.1 million euro, boosted by growth in business in Spain and the UK and by the acquisition of an additional 33% of Tube Lines (which holds a concession to three lines of London Underground) and consolidation of handling company Swissport in October. EBITDA totalled 335.3 million euro, a 41.2% increase. The EBITDA margin increased to 10.5%.
The Services backlog totalled 7,174 million euro (+44.3% ), boosted notably by major contracts landed by Amey: Cumbria, C Vehicles and Bedfordshire. (
The backlog does not include the Tube Lines backlog, which would increase the figure by approximately 15,000 million euro
Through Amey, the Services division has firmly established its presence in the UK, a market which represents 55% of the division's total revenues (1.771.1 million euro (+28.1%)) and close to 50% of its EBITDA (165.6 million euro (+66%)). Amey also greatly improved its EBITDA margin, to 9.4% (7.2% in 2004). Amey's backlog increased by 49.6% to 4,223 million euro. Major events after year-end include: the acquisition of Owen Williams, a UK consulting and engineering company which provides design, project and asset management consultancy to the highway and railway sectors, for 35.2 million euro; and the entrance into the "Building Schools for the Future" (BSF) programme by obtaining the contract for Bradford's schools.
Services revenues in Spain increased by 10% to 1,167.8 million euro, and EBITDA rose 12.6% to 155 million euro. The backlog also increased significantly, rising 37.2% to 2,950 million euro.
(*) Does not include the contract to maintain three lines of London Underground (Tube Lines)
Earnings presentation Ferrovial 2005
|KEY FIGURES (amounts in million euro)
|Net income (exc. extraordinary gains on Cintra)
|Net financial debt
|Gross capital expenditure
|Real estate backlog
|Services backlog (*)