january - september 2012 results - september 2012 results 1 motorways services construction airports...

January - September 2012

Results

1

A I R P O R T S M O T O R W A Y S C O N S T R U C T I O N S E R V I C E S

INDEX

GENERAL OVERVIEW ....................................1 MOTORWAYS ...............................................2

Traffic performance ..................................2 Other important issues ..............................3 Contract awards .......................................3 Tenders ...................................................3 407-ETR ..................................................4

SERVICES ....................................................5 Businesses in Spain ..................................5 AMEY ......................................................5 Backlog ...................................................5

CONSTRUCTION ...........................................6 Backlog ...................................................6 Markets ...................................................6 Budimex ..................................................6 Webber ...................................................6 Other markets ..........................................6

AIRPORTS ...................................................7 Traffic performance ..................................7 Tariffs .....................................................7 Income statement ....................................8 Regulatory aspects ...................................8 Net debt ..................................................9 Bond issuance and refinancings .................9 Dividends ................................................9 Disposals .................................................9

CONSOLIDATED INCOME STATEMENT ......... 10 BALANCE SHEET AND OTHER MAGNITUDES . 12

Net consolidated debt ............................. 13 Corporate credit rating ............................ 13

APPENDIX I: SIGNIFICANT EVENTS ............. 14 Events after the close ............................. 15

APPENDIX II: PRINCIPAL CONTRACT AWARDS

................................................................ 16 APPENDIX III: EXCHANGE-RATE MOVEMENTS

................................................................ 17 Comparable information: Income statement analysis in like-for-like terms responds to the need to have an accurate picture of the performance of the underlying business. The principal adjustments made to achieve this comparable analysis is the elimination of fair-value adjustments (hedging, impairments and asset revaluations), Exchange-rate movements and changes to the consolidation perimeter.

*EBIT For the purposes of analysis, all the comments referring to EBIT are before impairments and disposals of fixed assets

GENERAL OVERVIEW

BUSINESS PERFORMANCE In the first nine months of 2012, the highlights were the significant increase in EBITDA at the principal

infrastructure assets, the bonds issued by Heathrow Holdings (formerly known as BAA) and the 407-ETR

as part of their long-term capital markets financing strategies and the refinancing of upcoming maturities

ahead of time. Some important long-term contracts were awarded during the period, such as Sheffield in

the Services division, and the East Extension of the 407-ETR in Motorways (consortium led by Cintra). In

Construction, the division was named in October 12th “Apparent Preferred Proposer” for the contract to

build the US-460 motorway in Virginia.

Tariff increases, traffic growth and cost-controls combined to boost EBITDA considerably, both at

Heathrow airport (+10.1%) and the 407-ETR (+9.2%), both in local currency terms [assets consolidated

by the equity method].

At the Motorways division, there were signs of recovery in America, with growth above the LTM average

in both the second and third quarters, especially in heavy traffic. In Europe, tariff increases partially offset

the reduced traffic.

The Services division saw significant sales growth (+6.6%), principally due to the growth in the UK.

At the Construction division, the trend seen in earlier quarters continued, with falls in domestic activity

offset by the growth in the international business, especially in Poland and the US.

On 17 August, Ferrovial announced the sale of 10.62% of Heathrow Holdings to Qatar Holding for

GBP478mn, subject to the approval of the EU competition authorities. On 23 April, was announced the

sale of Edinburgh Airport to GIP for GBP807.2mn, the proceeds of which were used to repay bank debt.

Heathrow Holdings paid GBP180mn of dividends during the period. The 407-ETR also paid dividends,

amounting to CAD263mn. Dividend contribution to Ferrovial from Airports and Toll roads totalled

EUR207mn. On 17 October the ETR 407 paid a dividend of CAD190mn.

At the close, the company’s net cash position excluding infrastructure projects was EUR898mn, after

making investments of EUR191mn and paying EUR203mn in dividends.

Revenues reached EUR5,563mn in the period, with EBITDA of EUR660mn (+10%).

FINANCINGS In 2012, the 407-ETR made two long-term bond issues for a combined CAD600mn, which enabled the

2014 maturity to be refinanced ahead of time. In April it issued CAD400mn at 4.19% maturing in 2042,

and in September CAD200mn at 3.98% maturing in 2052.

In 2012, Heathrow Holdings issued bonds worth in excess of GBP3bn as part of its long-term capital

markets financing strategy, including its first issuance in Swiss francs and another in Canadian dollars, as

well as a number of private placements.

Sep-12 Sep-11 Chg. (%) LfL (%)

Sep-12 Dec-11 Chg. (%)

Revenues 5,652.6 5,515.5 2.5 0.5

Construction Backlog 9,063 9,997 -9.3

EBITDA 659.5 598.1 10.3 8.6

Services Backlog 13,397 12,425 7.8

EBIT* 498.3 450.9 10.5 8.7

Net result 488.5 481.9 1.4 n.s.

Traffic Sep-12 Sep-11 Chg. (%)

Capex -626.4 8.2 n.s.

ETR 407 (VKT´ 000) 1,745,396 1,734,672 0.6

Chicago Skyway (ADT) 42,803 42,680 0.3

Indiana Toll Road (ADT) 27,749 27,441 1.1

Autema (ADT) 15,119 19,224 -21.4

Sep-12 Dec-11 Chg. (mn)

Ausol I (ADT) 13,420 14,812 -9.4

Net financial Debt -5,609.2 -5,170.9 -438

Ausol II (ADT) 14,694 16,087 -8.7 Net Debt Ex-Infrastructure Projects

898.4 906.6 -8

Heathrow (million pax.) 53.0 52.6 0.6

Results January-September 2012

2

MOTORWAYS

Sep-12 Sep-11 Chg (%) Like for

Like (%)

Revenues 293.4 300.3 -2.3 -3.5

EBITDA 226.9 222.8 1.8 0.4

EBITDA Margin 77.3% 74.2%

EBIT 178.3 179.8 -0.8 -2.1

EBIT Margin 60.8% 59.9%

Performance in the first nine months of the year was principally affected

at the revenue and EBITDA by the lack of any compensation account

payments in 2012 for the Spanish motorways R4 and Ocaña-La Roda

(EUR23mn in 2011), the reversal of VAT-related provisions in Autema

(EUR21mn) and traffic weakness, partially offset by tariff increases.

TRAFFIC PERFORMANCE

In Spain, traffic in the motorway corridors continued to decline, inter alia

due to:

The recession in Spain: the recovery that started in April 2009 peaked in

April 2010, followed by a period in which the economy drifted sideways

and then entered another recession in 2011 that continues in 2012.

The sharp increase in the price of fuel since the end of 2010 took petrol

and diesel prices to record highs in April this year.

The overall decline in traffic seen since the start of the crisis has led to a

considerable improvement in traffic conditions on the alternative (free)

routes.

Motorists’ unwillingness to pay tolls during a recession, accentuated in

recent quarters by the uncertainty generated concerning the Spanish

economy and the rise in employment.

The increase in VAT from 18% to 21% since 1 September has led to a

2.5% increase in the tariffs paid by motorway users.

Other particular circumstances that are having an impact on the Spanish

motorways’ growth are as follows:

At Ausol I, the reduction in the speed limit to 80kmph on the alternative

route (the N-340) helped to alleviate the speed of decline in traffic, while

the toll increase (+7.5%) implemented on 29 July had a negative impact

on the traffic (increase due to the cancellation of a compensation account

introduced in 1999).

At Autema, a new tariff regime came into effect in January which does

away with the subsidies to local users on the Sant Cugat-Terrassa

section. This motorway has a compensation mechanism that guarantees

the operating result, under an agreement dating back to 1999.

The other European motorways also suffered from the sharp increase in

the price of fuel. The price of petrol and diesel in Portugal and Ireland

also hit all-time highs in April

In Portugal, the modifications to the concession contract for the Norte

Litoral motorway eliminate the traffic risk, and the Algarve motorway

concession contract is in the process of being modified along similar lines.

Ireland: negative performance due to the deterioration in the economic

situation and the higher fuel prices at M4 & M3, once the ramp-up period

has come to an end.

Traffic (IMD) Revenues EBITDA EBITDA Margin

Full consolidation Sep-12 Sep-11 Chg. Sep-12 Sep-11 Chg. Sep-12 Sep-11 Chg. Sep-12 Sep-11 Chg. (pbs)

Chicago Skyway 42,803 42,680 0.3% 41.2 36.6 12.3% 36.3 31.3 16.0% 88.2% 85.4% 277

Ausol I 13,420 14,812 -9.4%

Ausol II 14,694 16,087 -8.7%

Ausol

40.8 44.4 -7.9% 32.4 35.0 -7.5% 79.3% 78.9% 37

Autema* 15,119 19,224 -21.4% 64.8 60.7 6.7% 76.8 50.7 51.4% 118.6% 83.6% 3,505

Radial 4 6,015 7,242 -16.9% 11.8 27.4 -56.9% 5.2 20.5 -74.7% 43.9% 74.8% -3,098

Ocaña-La Roda 3,540 4,240 -16.5% 11.3 21.6 -47.6% 5.8 16.2 -64.5% 50.7% 74.7% -2,406

M4 25,625 26,066 -1.7% 16.1 16.1 -0.1% 11.1 11.0 0.8% 68.8% 68.2% 63

M3* 25,425 25,846 -1.6% 15.2 26.6 -43.0% 11.6 21.9 -47.0% 76.6% 82.5% -589

Euroscut Algarve

27.9 27.0 3.4% 24.1 23.3 3.5% 86.5% 86.4% 10

Euroscut Norte Litoral*

31.5 32.5 -3.2% 27.5 29.5 -6.7% 87.3% 90.5% -320

Azores 8,351 16.1 13.2 81.6%

Holding & Others 16.7 7.2 n.s. -17.0 -16.6 n.s.

Total

293.4 300.3 -2.3% 226.9 222.8 1.8% 77.3% 74.2% 312

Equity consolidated Sep-12 Sep-11 Chg. Sep-12 Sep-11 Chg. Sep-12 Sep-11 Chg. Sep-12 Sep-11 Chg. (pbs)

ETR (VKT) 1,745,396 1,734,672 0.6% 425.2 362.4 17.3% 352.7 299.8 17.6% 82.9% 82.7% 20

Indiana Toll Road 27,749 27,441 1.1% 114.6 98.9 15.9% 93.4 81.2 15.1% 81.5% 82.1% -59

Ionian Roads 30,033 35,600 -15.6% 44.4 51.5 -13.8% 24.8 30.9 -19.9% 55.9% 60.1% -423

* Financial assets


3

North America:

Q3'11 Q4'11 Q1'12 Q2'12 Q3'12

407 ETR (VKT) -0.4% -0.4% -0.6% 1.6% -0.1%

Chicago Skyway -7.6% -6.2% -0.7% 1.1% 0.4%

ITR Barrier -7.1% -6.2% 1.6% 3.8% 2.7%

ITR Ticket -3.0% 0.8% 2.0% 2.2% -1.6%

Traffic on the US motorways during the first nine months of the year, and

especially in the second and third quarters, outperformed the trend of the

last 12 months, supported by economic improvement and petrol prices

below their April highs.

Indiana: the motorway posted growth for the third consecutive quarter,

after the completion of the improvement and widening works and the

increase in the speed limit from 55mph to 70mph on one section. These

works have resulted in a significant increase in heavy vehicle traffic.

Chicago: the improving traffic trend already observed was confirmed,

seeing positive traffic growth in the second and third quarters of 2012 for

the first time since end-2009. Of particular note was the growth in heavy

vehicles (+15.9%).

OTHER IMPORTANT ISSUES

RADIAL 4

On 14 September, the Board of the Radial 4 motorway agreed to file for

creditor protection.

The Radial 4 project was directly affected by external factors

(substantially lower traffic than expected, overruns on expropriation

costs, economic crisis, etc.) that under current conditions are preventing

the concession to meet various payment commitments due to

expropriated landowners and financial entities. Important factors in taking

this decision were that the potential supports for the concession

envisaged in the legislation were not effectively implemented by the

contracting body.

In the light of all the above, the Board took the above-mentioned decision

– which was also legally binding - in the confidence that a solution would

be reached within the next few months.

The investment relating to this project is fully provisioned. There is not

expected to be any significant impact whatsoever on Ferrovial´s

accounts.

The net debt associated with this asset amounted to EUR575mn.

OCAÑA - LA RODA

The Ocaña-La Roda motorway filed for creditor protection on 19 October.

The investment relating to this project is fully provisioned. There is not

expected to be any significant impact whatsoever on the Ferrovial’s

accounts.

The net debt associated with this asset amounts to EUR524mn.

DIFFERENTIATION BETWEEN FINANCIAL ASSETS AND

INTANGIBLE ASSETS

In the application of IFRIC 12, concession contracts can be classified as

either intangible or financial assets. Contracts treated as financial assets

are those than include some revenue guarantee mechanism, and where

there is thus no traffic risk. In the case of Cintra, the concessions treated

as financial assets are the following: Autema, Norte Litoral and the M-3.

In the case of the North Litoral, the classification as a financial asset is

due to changes in the terms of the contract from shadow tolls to

availability payments.

CONTRACT AWARDS

Canada: 407 East Extension (availability payments)

Total investment CAD1,100 mn.

Spain: Autovia Purchena- Huercal Overa (availability payments)

Total investment approximately EUR145mn.

Cintra has acted as financial advisor on the US460 project, where a

consortium led by Ferrovial has been designated as “Apparent Preferred

Proposer”.

TENDERS

In spite of the uncertainty in the markets, there has been a slight

recovery in the development activities of public authorities in some of

Ferrovial’s international target markets.

In North America, Ferrovial is evaluating various different projects in

various States.

In Europe, the company is working on various projects.

In Spain, the new PITVI infrastructure plan confirms the government’s

intention to have the majority of its projects in the form of concessions.

The company is also studying projects in other markets such as Australia

and Latin America.


4

407-ETR

Sep-12 Sep-11 Chg (%)

Revenues 546.8 502.1 8.9

EBITDA 453.5 415.4 9.2

EBITDA Margin 82.9% 82.7% EBIT 408.3 371.8 9.8

EBIT Margin 74.7% 74.0% Financial results -219.5 -238.7 8.0

EBT 188.8 133.1 41.8

Corporate income tax 53.8 32.7 -64.5

Net Income 135.0 100.4 34.5

Net Income attributable

to Ferrovial 58.4 43.4 34.4

Contribution to

Ferrovial equity accounted result (€)

35.4 24.5 44.5

Since Ferrovial’s disposal of 10% in 2010, the asset has been

consolidated by the equity method as a reflection of the size of the stake

held by Ferrovial (43%).

407-ETR made an equity-accounted contribution to Ferrovial of EUR35mn

after the annual depreciation of the goodwill generated on the sale of a

10% stake in 2010, which is being depreciated over the life of the asset.

TRAFFIC

Traffic performance, measured in kilometres travelled (VKT) increased

+0.6%, an improvement over the same period last year (-0.5%). This

was thanks to both an increase in the number of journeys (+0.1%) and

in the average distance travelled (+0.3%, 20.39km).

INCOME STATEMENT

407-ETR posted significant growth in both revenues (+8.9%) and EBITDA

(+9.2%) in local currency terms. This positive performance reflected a

combination of traffic growth and the tariff increases introduced on 1

February. Average revenues per journey increased by 8.7% compared

with the first nine months of 2011.

DIVIDENDS

CAD Mn 9M 2012 2011 Chg. %

Q1 87.5 82.5 +6.6 Q2 87.5 82.5 +6.6

Q3 87.5 82.5 +6.6

Q4 102.5

Total 262.5 350.0

Extraordinary 110.0

Total 262.5 460.0

On 17 October, 407-ETR announced a dividend payment of CAD190mn.

NET DEBT

407-ETR closed the quarter with net debt of CAD4,959mn.

The company has no significant debt maturities until 2015 (CAD500mn).

DEBT ISSUANCES

On 6 September, 407-ETR issued a bond for CAD200mn, with a 3.98%

coupon and maturing in 2052.

In April 2012, the concession issued CAD400mn with a 4.19% coupon

and maturing in April 2042, which enabled it to refinance its 2014

maturity ahead of time.

CREDIT RATING

407-ETR is rated A, with Stable Outlook by Standard & Poor’s.

407-ETR TARIFFS

The following table compares the 2011 and 2012 tariffs. The tariff

increase was introduced on 1 February 2012.

CAD 2012 2011

Regular Zone Peak Period Monday-Friday: 6am-7am, 9am-10am, 3pm-4pm, 6pm-7pm

Peak Hours Monday-Friday: 7am-9am (2010: 7.30am-8.30am), 4pm-6pm

24.20¢ /km

25.20¢ /km

22.75¢ /km

22.95¢ /km

Light Zone Peak Period Monday-Friday: 6am-7am, 9am-10am, 3pm-4pm, 6pm-7pm Peak Hours Monday-Friday: 7am-9am, 4pm-6pm

22.60¢ /km

23.55¢ /km

21.25¢ /km

21.45¢ /km

Midday Rate Weekdays 10am-3pm

21.00¢/km 19.35¢/km

Off Peak Rate Weekdays 7pm-6am, Weekends & public holidays

19.35¢/km 19.35¢/km

Transponder: Monthly rental $3.00 $2.75

Transponder: Annual rental $21.50 $21.50

Video toll per journey $3.80 $3.65

Cargo per journey (This is not a charge per km.) $0.60 $0.50


5

SERVICES

Sep-12 Sep-11 Chg.(%) LfL (%)

Revenues 2,204.1 2,068.1 6.6 3.0

EBITDA 216.3 208.4 3.8 0.7


EBIT 135.8 130.1 4.4 0.3


Backlog* 13,396.8 12,424.7 7.8 5.3

* Backlogs compared with December 2011

In comparable terms, Services reported revenue growth of +3.0%, and a

slight increase at the EBITDA (+0.7%) and EBIT (+0.3%) levels.

The revenue growth was generated in the UK (+12.2%), while in Spain

the declining trend seen in previous quarters continued as a

consequences of the difficult economic environment (revenues fell by

5.0%).

BUSINESSES IN SPAIN

Sep-12 Sep-11 Chg. (%)

Revenues 1,086.4 1,144.2 -5.0

EBITDA 138.3 138.4 -0.1

EBITDA Margin 12.7% 12.1% EBIT 70.9 72.0 -1.5

EBIT Margin 6.5% 6.3% Backlog* 5,725.3 6,172.1 -7.2

Revenues -5.0%, EBITDA -0.1% and EBIT -1.5%, in line with the

company’s expectations.

In the Waste Collection and Treatment business, the economic slowdown

was reflected in a contraction in the tonnes of industrial waste processed

(-15%). There was also a fall in revenues due to cuts in services by some

municipalities, as well as the termination or non-renewal of contracts with

low returns or experiencing payment problems.

The Infrastructure Maintenance business generated lower revenues due

to the company’s strategy of contract selection with the objective of

controlling investment in working capital and protecting returns on the

portfolio in a scenario of increasing competition. In some contracts, there

was a significant negative impact from cuts in services required by clients

due to budget cuts, principally in terms of highway maintenance.

In spite of the fall in revenues, the EBITDA and EBIT margins were higher

than in 2011 thanks to cost-controls and the active management of the

quality of the backlog.

AMEY

Sep-12 Sep-11 Chg.(%) LfL (%)

Revenues 1,117.7 924.0 21.0 12.2

EBITDA 77.9 70.0 11.4 3.3


EBIT 64.9 58.1 11.8 3.7


Backlog* 7,671.5 6,252.6 22.7 17.0

Revenues increased in comparable terms (+12.2%) as a reflection of

various contracts coming into operation, in particular the prisoner

transport and custody contracted awarded to the company in 2011, which

made a contribution of EUR41mn. The rest of the growth was driven by

higher turnover from existing contracts, in particular the highway

maintenance for Area 9 and the London Area for additional work arising

from the Olympic Games, works completed in the first semester.

EBITDA (+3.3%) and EBIT (+3.7%) increase in comparable terms thanks

to the higher execution of backlog. Growth in profitability was lower than

revenues principally due to non-recurrent profits generated in 2011 on

the sale of machinery and costs related to the initiation of contracts in

2012.

BACKLOG

The backlog reached EUR13,397mn (+5.3% vs. December 2011).

Once the financial closure of the Sheffield (UK) contract had been

achieved, this contract was included in the backlog. The Sheffield contract

is for services worth approximately GBP1,400mn (nominal).

In Spain, the company was awarded two waste treatment plants in the

Canary Islands, the renewal for eight years of a contract for urban waste

collection and highway cleaning for San Vicente de Raspeig, a one-year

renewal of a green space cleaning and maintenance contract for 10

districts of Madrid, a three-year maintenance contract for various State

highways, and a four-year contract for Call Centre for the Madrid Town

Hall.


6

CONSTRUCTION

Sep-12 Sep-11 Chg. % Like-for-Like

(%)

Revenues 3,168.7 3,143.8 0.8 -0.3

EBITDA 240.7 171.4 40.4 37.0


EBIT 210.5 147.4 42.8 39.1


Backlog* 9,062.9 9,997.2 -9.3 -11.3

* Backlogs compared with December 2011

Revenues increased by 0.8% in the first nine months of the year,

maintaining the same dynamic of the past few years: a significant drop in

activity in Spain, offset by strong growth internationally. Eliminating the

FX effect, revenues would have fallen 0.3% vs. last year.

EBITDA increased 37% to EUR241mn, principally due to the

regularization of provisions for finalised works and the positive

performance of other markets.

BACKLOG

Sep-12 Dec-11 Chg. %

Civil work 7,118.0 7,602.4 -6.4

Residential work 274.9 363.7 -24.4

Non-residential work 978.2 1,334.8 -26.7

Industrial 691.9 696.3 -0.6

Total 9,062.9 9,997.2 -9.3

The backlog contracted 9.3% vs. December 2011, due to a combination

of contract execution, the inclusion of important international civil works

projects such as the contract for the construction of the 407-ETR East

Extension in Canada and the slower rate of new contract awards.

The backlog does not include the recently awarded contract in the State

of Virginia (“Apparent Preferred Proposer” status), worth USD1,396mn

(100%) for a four-lane toll motorway between the cities of Petersburg

and Suffolk. Ferrovial’s capacity to develop complex projects, such as the

LBJ and NTE motorways in Texas, is positioning the company as a good

reference in the USA.

The international backlog amounts to EUR6,255mn, very much bigger

than the domestic backlog (EUR2,807mn). The domestic backlog

contracted by 12%, principally due to the fall in public sector tenders in

Spain (-45% to August).

MARKETS

The Construction division restructured its internal managing structure,

with the object of adapting itself to the new market reality. Budimex and

Webber continue to report directly, while Spain no longer reports

separately and its activities are included with the other markets.

BUDIMEX


(%)

Revenues 1,096.6 934.9 17.3 21.7

EBITDA 45.7 52.9 -13.5 -9.9


EBIT 36.2 47.6 -24.1 -20.9


Backlog* 1,545.2 1,919.7 -19.5 -25.8

Significant revenue growth due to execution of some high-volume

contracts and better weather conditions. Like for Like variation without

excluding PNI.

The backlog reached EUR1,545mn, 25.8% below 2011.

WEBBER


(%)

Revenues 425.4 307.4 38.4 25.5

EBITDA 16.5 12.3 33.9 19.9


EBIT 12.8 8.0 59.3 41.8


Backlog* 1,460.0 1,650.6 -11.5 -12.1

Strong revenue growth in local currency terms (+26%), reflecting the

start of contracts awarded last year and the higher level of execution of

the “managed lanes”. In euro terms, revenue growth reached +38% due

to euro weakness against the US dollar.

OTHER MARKETS


(%)

Revenues 1,646.8 1,901.6 -13.4 -15.1

EBITDA 178.5 106.3 67.9 60.5


EBIT 161.6 91.8 76.1 67.3


Backlog* 6,057.7 6,426.9 -5.7

Revenues declined, principally due to the performance of the domestic

market (-29%). The works related to the new motorways in Texas

continued to make good progress. The improved returns was principally

down to the reversal of provisions on the finalisation of projects not being

offset by the start of new projects.


7

AIRPORTS

On 15 October, it was announced that BAA brand would no longer be of

use, being replaced by Heathrow Holdings. There are various reasons for

this change, including the fact that Heathrow will represent 95% of the

old group once Stansted has been sold.

On 17 August, Ferrovial announced the sale of 10.62% of the group to

Qatar Holding, subject to the approval of the European competition

authorities.

The division contributed EUR274mn to Ferrovial in the form of equity-

accounted profits, including the capital gain on the sale of Edinburgh

Airport (EUR100mn), the positive impact of the reduction in the tax rate

(EUR90mn) and EUR123mn for marking to market its derivatives

portfolio.

TRAFFIC PERFORMANCE

Traffic in the first nine months of 2012:

Heathrow (+0.6%) handled 53.0 million passengers. The underlying

traffic growth was positive and the number of passengers was a new high

during the first nine months of a year. In July and August, traffic was

400,000 passengers less than in the previous year, due to the Olympic

Games: British travellers preferred not to travel and to stay and enjoy this

important event, while international travellers preferred to avoid any

possible delays caused by the Games. In September, traffic got back to

normal, with a new record for September traffic.

By destination, the North Atlantic saw the strongest growth (+3.9%), and

there was significant growth in passenger numbers heading for Brazil, the

Middle East and the Far East. Domestic traffic improved sligihtly (+0.1%),

European traffic fell slightly (-0.4%), principally due to the impact of the

Olympic Games.

Traffic at Stansted fell (-4.6%), and the number of regular flights to

Europe declined by 1.8%. Year to date, Stansted continues to post the

highest load factors (81.1%), which suggests a limited deterioration in

the dynamics of demand.

Traffic growth by destination:

2012 2011 Chg. %

UK 12.7 12.8 -1.1%

Europe 34.4 34.4 -0.1%

Long Haul 28.7 28.5 0.8%

Total 75.8 75.7 0.0%

TARIFFS

The increases in the maximum aeronautical tariffs applicable in the 2012-

13 fiscal year came into force on 1 April 2012.

The following table sets out the tariff increases for 2011 and 2012:

2012 2011 Regulation

Heathrow +12.7% +12.2% RPI+7.5%

Stansted +6.8% +6.3% RPI+1.63%

The tariffs that come into force on 1 April 2013 will be based on the rate

of inflation in August 2012, which was 2.9%.The tariff increases will be

10.4% and 4.5% at Heathrow and Stansted respectively.

GBP Traffic Revenues EBITDA EBITDA Margin

Sep-12 Sep-11 Chg. Sep-12 Sep-11 Chg. Sep-12 Sep-11 Chg. Sep-12 Sep-11 Chg. (bps)

Heathrow 53.0 52.6 0.6% 1,574 1,442 9.2% 799 725 10.2% 50.8% 50.3% 50

Heathrow express

135 130 4.1% 48 45 7.8% 35.9% 34.6% 124

Heathrow total 53.0 52.6 0.6% 1,709 1,571 8.7% 847 770 10.1% 49.6% 49.0% 62

Stansted 13.5 14.1 -4.6% 185 181 2.2% 75 73 3.4% 40.5% 40.0% 45

Regulated airports 66.4 66.7 -0.5% 1,894 1,752 8.1% 922 842 9.5% 48.7% 48.1% 65

Edinburgh*

42 41 4.0% 17 16 2.4% 39.2% 39.8% -59

Glasgow 5.5 5.3 4.1% 66 63 5.0% 25 24 1.8% 37.5% 38.7% -120

Aberdeen 2.5 2.3 8.9% 43 39 9.5% 16 14 15.6% 37.6% 35.6% 199

Scottish airports 8.1 7.6 5.5% 152 143 5.9% 58 55 5.5% 38.0% 38.2% -16

Southampton 1.3 1.4 -4.5% 20 21 -4.6% 6 8 -19.4% 31.9% 37.7% -582

Holding & adl.

-76 -71 11 3 Total (LfL) 75.8 75.7 0.0% 1,990 1,846 7.8% 997 908 9.9% 50.1% 49.2% 94

Perimeter changes

42

48

Total 75.8 75.7 0.0% 1,990 1,888 5.4% 997 956 4.3% 50.1% 50.6% -52

*Until May


8

INCOME STATEMENT

GBP Sep-12 Sep-11 Chg. % LfL

(%)

Revenues 1,990.0 1,887.9 5.4 7.8

EBITDA 997.3 955.9 4.3 9.9

EBITDA margin % 50.1% 50.6%

Depreciation 439.4 454.4 -3.3

EBIT 557.8 501.5 11.2 16.7

EBIT margin % 28.0% 26.6%

Impairment 163.2

Financial results -368.2 -734.5 49.9 6.1

EBT 352.9 -232.9 251.5 63.7

Corporate income tax 91.5 219.0 -58.2 -87.2

Net income (100%) 444.5 -13.9 n.s. 56.2

Net income €(49,99%%)

273.9 -8.9 n.s. 56.2

Revenue growth reached 7.8% and EBITDA growth 9.9%, supported by:

GBP Sep-12 Sep-11 LfL (%)

Aeronautic 1,151.5 1,046.8 10.0

Retail 451.9 432.9 4.4

Others 386.7 366.5 5.5

TOTAL 1,990.0 1,846.2 7.8

Aeronautical Retail Other

GBP Sep-12 LfL

(%) Sep-12 LfL

(%) Sep-12 LfL

(%)

Heathrow 955.2 11.2 338.4 5.8 415.0 5.7

Stansted 102.1 4.3 63.1 -3.0 20.0 9.8

Glasgow 34.2 4.9 21.1 7.3 10.9 1.3

Edinburgh 23.0 4.7 13.7 1.8 5.8 0.0

Aberdeen 24.8 7.9 8.5 14.2 9.8 9.5

Southampton 12.2 -2.9 6.0 -10.4 1.8 5.5

Other &

adjustments 0.0

1.1 68.7 -76.7 7.2

Total airports 1,151.5 10.0 451.9 4.4 386.7 5.5

Aeronautical revenues rose +10.0% on the growth at Heathrow based

on: traffic +0.6%, Tariff +12.7% since April 2012. However, this increase

was partially offset by lower real tariff earnings as a reflection of the

different traffic mix (more passengers in transit and lower aircraft parking

revenues) of around GBP25mn that will be recovered through the

adjustment mechanism (the K factor) in the next financial year (2013-14).

At Stansted, the fall in traffic (-4.6%) was mitigated by the tariff

increases in April 2012 (+6.8%).

Retail revenues (+4.4%). Retail revenues continued to show growth,

continuing the trend seen in previous years.

At Heathrow, gross retail revenues increased +5.8% and the net

revenues per passenger by +4.8% (+8.9% at Q3) to reach GBP6.04 per

passenger. This significant growth was largely due to the to higher sales

in the Duty Free shops, the airside retail spaces, the FX offices and in the

car parks.

Sales in the Duty Free shops and the airside retail spaces were very

positive thanks to the higher number of non-European travellers, the new

retail spaces in Terminal 3, including the new walk through in World Duty

Free, as well as the success of the luxury and fashion stores. The

increased sales in the FX offices are explained by the combination of a

higher number of passengers and improvements in the terms of the

retailers’ contracts. It is also important to note that the increasein

restaurant revenues after the improvement in the offering with new

Premium establishments and a general improvement in quality and

service levels. The Olympic Games had a positive impact on advertising

revenues.

At Stansted, gross retail earnings fell (-3.0%), but the net spending per

passenger increased by 2.5%.

Other revenues rose +5.5% on higher rail revenues (+7.8%) as a

reflection of an increase in fares.

REGULATORY ASPECTS

TARIFFS FOR THE NEXT FIVE-YEAR PERIOD (Q6)

On 30 July, Heathrow announced its initial business plan for the next

regulatory period (Q6), which starts in April 2014, to both the CAA and

the other interested parties.

The CAA’s formal consultation process on tariff regulation is expected to

begin at the beginning of 2013, once the “constructive engagement

process” is completed. Heathrow will publish its definitive business plan in

January 2013. The CAA’s final tariffs proposals are expected to be

published in September 2013, with the final decision taken on them in

January 2014.

REGULATORY ASSET BASE (RAB)

GBP Heathrow Stansted Total

December 2011 12,490.2 1,359.5 13,849.7

September 2012 13,173.8 1,345.0 14,518.8

The increase in the RAB in the first nine months of 2012 reflects the

investments made (GBP865mn), the increase in inflation (GBP280mn) and

the profiling (GBP25mn), partly offset by depreciation during the period

(GBP450mn).


9

NET DEBT

GBP Sep-12 Dec-11 Chg. %

Senior loan facility 587.4 684.4 -14.2

Subordinated 566.7 538.1 5.3

Regulated airports 11,194.8 10,663.4 5.0

Non-regulated airports 340.3 1,035.6 -67.1

Other & adjustments -42.2 -59.5 -29.1

Total 12,647.0 12,862.0 -1.7

In 2012, the financial structure of the debt has been completely

transformed. This intense capital markets activity took the form of bond

issuance of more than GBP3,000mn, enabled the company to extend its

debt maturity profile, increase the number of markets and currencies and

also very significantly reduce its banking exposure.

BOND ISSUANCE AND REFINANCINGS

Since the beginning of 2012, 11 debt placements and issuances has been

made for more than GBP3,000mn in various currencies, rating levels and

formats. The highlights were the bond issues in the USA (USD500mn)

and its inaugural issue in Canada (CAD400mn) as part of its geographical

diversification process that already included issuance in sterling, euros

and Swiss francs.

Amount Maturity Coupon

Class A

CAD400mn 7 years 4.000%

GBP300mn 3 years 3.125%

USD500mn 3 years 2.500%

CHF400mn 5 years 2.500%

EUR700mn 5 years 4.375%

GBP95mn (ILS) 27 years 2.668%

GBP180mn* 10 years 1.650%

EUR50mn* 20 years 4.250% (yield)

EUR50mn* 20 years 4.125% (yield)

Class B



(*) Private placement

In June 2012, the credit and liquidity lines were refinanced. There was

high demand for the new loan, in excess of GBP4,000mn and was

subscribed by a group of 17 British and international banks. This high

level of demand allowed the maximum amount of the loan to be

increased to GBP2,750mn, including a GBP2,000 revolving credit

(GBP1,500mn Class A and GBP400mn Class B for investment and

GBP100mn for working capital) and GBP750mn in liquidity lines.

The new loan has a maturity of five years (June 2017) and replaces a

similar credit which matured in August 2013. The margins on the Class A

and Class B tranches are 150bp and 225bp, respectively.

A GBP1,000mn bond maturing in February 2012 was also cancelled and

repaid GBP400mn of the GBP625mn of the Class B loan.

In April 2012, the terms of the Senior loan facility (Formerly known as

Toggle debt) were modified, with the debt changing from perpetual to a

maturity of seven years, and the margin was increased slightly (7.00%

vs. 6.89%). The above all helped Heathrow Holdings gain the flexibility to

pay dividends to its shareholders.

Heathrow Holdings now has a financial structure based principally on

capital markets financing, with only marginal bank financing.

DIVIDENDS

In 2012, Heathrow Holdings started to pay quarterly dividends to its

shareholders since its acquisition in 2006. During the first nine months of

2012, BAA has paid GBP180mn to its shareholders.

DISPOSALS

SALE OF STANSTED AIRPORT

On 26 July 2012, the Court of Appeal refused the request to appeal

against the decision of the Competition Commission. After careful

consideration of this decision, the company decided not to appeal to the

Supreme Court and as a result has started the process of the sale of

Stansted Airport.

SALE OF EDINBURGH AIRPORT

On 23 April 2012, the sale of Edinburgh Airport to GIP was announced for

GBP807.2mn, or 16.7x EBITDA 2011. The proceeds of the sale were used

to repay the non-regulated airports’ bank debt.


10

CONSOLIDATED INCOME STATEMENT

Before Fair

value Adjustments

Fair value Adjustments

Sep-12

Before Fair

value Adjustments

Fair value Adjustments

Sep-11

Revenues 5,652.6

5,652.6 5,515.5

5,515.5

Other income 12.5

12.5 10.4

10.4

Total income 5,665.2

5,665.2 5,525.9

5,525.9

COGS 5,005.6

5,005.6 4,927.8

4,927.8

EBITDA 659.5

659.5 598.1 598.1

EBITDA margin 11.7%

11.7% 10.8%

10.8%

Period depreciation 161.2

161.2 147.2

147.2

EBIT (ex disposals & impairments) 498.3

498.3 450.9 450.9

EBIT margin 8.8%

8.8% 8.2%

8.2%

Disposals & impairments -10.7

-10.7 235.3 235.3

EBIT 487.6

487.6 686.2 686.2

EBIT margin 8.6%

8.6% 12.4%

12.4%

FINANCIAL RESULTS -288.7 17.0 -271.7 -281.2 35.9 -245.3

Financial result from financings of infrastructures projects -212.6

-212.6 -196.1

-196.1

Derivatives, other fair value adjustments & other financial result -4.9 -10.7 -15.6 -3.7 -0.4 -4.1

Financial result from financings of other companies -29.7

-29.7 -76.5

-76.5

Derivatives, other fair value adjustments & other financial result -41.6 27.7 -13.8 -4.8 36.3 31.5

Equity-accounted affiliates 195.2 121.6 316.7 52.9 -31.0 21.9

EBT 394.0 138.6 532.6 457.9 4.9 462.8

Corporate income tax -52.6 -5.4 -58.0 37.5 -10.8 26.8

Net Income from continued operations 341.4 133.2 474.6 495.4 -5.8 489.5

Net income from discontinued operations

CONSOLIDATED NET INCOME 341.4 133.2 474.6 495.4 -5.8 489.5

Minorities 9.4 4.4 13.8 -7.7 0.0 -7.6

NET INCOME ATTRIBUTED 350.8 137.6 488.5 487.7 -5.8 481.9

The principal variations in the consolidation perimeter arising during the financial year are as follows:

Airports division: on 26 October 2011 Ferrovial sold 5.88% of FGP Topco, the holding company for the Heathrow Holdings group. As a result of this transaction, Heathrow Holdings has been consolidated by the equity method since November 2011. For comparative purposes, the results of Heathrow Holdings’s activities have been presented by the equity method for the 2011 financial year.


11

REVENUES

Sep-12 Sep-11 Chg. % Like-for-

Like (%)

Construction 3,168.7 3,143.8 0.8 -0.3

Airports 4.7 6.3 -25.3 8.7

Toll Roads 293.4 300.3 -2.3 -3.5

Services 2,204.1 2,068.1 6.6 3.0

Others -18.3 -3.0 n.s.

Total 5,652.6 5,515.5 2.5 0.5

EBITDA

Sep-12 Sep-11 Chg. % Like-for-Like (%)

Construction 240.7 171.4 40.4 37.0

Airports -15.4 -8.9 -73.7 -22.2

Toll Roads 226.9 222.8 1.8 0.4

Services 216.3 208.4 3.8 0.7

Others -8.8 4.4 n.s.

Total 659.5 598.1 10.3 8.6

DEPRECIATION

This was higher than in the same period last year (+6.0% like for like) at

EUR161mn.

EBIT (before impairments and disposal of fixed assets)

Sep-12 Sep-11 Chg. % Like-for-Like (%)

Construction 210.5 147.4 42.8 39.1

Airports -15.5 -9.4 -64.9 -22.1

Toll Roads 178.3 179.8 -0.8 -2.1

Services 135.8 130.1 4.4 0.3

Others -10.9 2.9 n.s.

Total 498.3 450.9 10.5 8.7

*For purposes of analysis, all the comments referring to EBIT are before

impairments and disposals of fixed assets.

Excluding the foreign exchange impact and changes in the consolidation

perimeter, this would have increased by 8.7%.

IMPAIRMENTS AND DISPOSAL OF FIXED ASSETS

This heading includes the additional impairments made for PNI (a

Budimex subsidiary) to cover that part of the initial investment not

already provisioned.

NET FINANCIAL EXPENSES

Sep-12 Sep-11 Chg. %

Infra projects -212.6 -196.1 -8.4

Other -29.7 -76.5 61.3

Net financial result (financing) -242.3 -272.6 11.1

Infra projects -15.6 -4.1 -277.7

Other -13.8 31.5 -144.0

Derivatives, other fair value adjustments & other financial result

-29.4 27.3 -207.6

Financial Result -271.7 -245.3 -10.8

The financial result increased by 10.8%, due to:

A reduction in financing result of an 11.1%, with an increase of the

financial result from infrastructure projects (due to more debt related to

projects under development), and a significant reduction of expenses

excluding infrastructure, which fell 61% as a reflection of the lower level

of gross debt in 2012 after the corporate debt refinancing in 2011

[EUR791mn was repaid and EUR1,314mn refinanced].

Derivative and others financial results were determined by the stock

performance (less positive than in the same period in 2011), costs of

bank guarantees and foreign exchange impact.

EQUITY ACCOUNTED RESULTS

Sep-12 Sep-11 Chg. %

Construction -0.6 -1.0 42.5

Services 9.5 6.9 37.8

Toll Roads 34.0 24.9 36.2

Airports 273.9 -8.9 n.s.

Total 316.7 21.9 n.s.

The companies consolidated by the equity method made a contribution of

EUR317mn (vs. EUR22mn in the same period in 2011). In 2012 the figure

includes the contributions from the 407-ETR (EUR35mn) and Heathrow

Holdings (EUR274mn), with the latter including the capital gain on the

sale of Edinburgh Airport (EUR100mn), the positive impact of the lower

tax rate (EUR90mn) and EUR120mn for marking the derivatives portfolio

to market.

TAXES

Effective tax rate reached 27%, excluding Equity Accounted (after tax).

NET RESULT

The net result of the first nine months of 2012 reached EUR489mn, vs.

EUR482mn in 2011 (2011 included the results from the sale of Swissport

and the M45 motorway).


12

BALANCE SHEET AND OTHER MAGNITUDES

Sep-12 Dec-11

FIXED AND OTHER NON-CURRENT ASSETS 17,972.7 17,499.8

Consolidation goodwill 1,500.7 1,482.3

Intangible assets 121.4 103.3

Investments in infrastructure projects 6,433.2 5,959.6

Property 40.9 63.7

Plant and Equipment 573.5 627.1

Equity-consolidated companies 5,409.0 5,199.4

Non-current financial assets 1,655.4 1,912.4

Receivables from Infrastructure assets 1,332.6 1,278.9

Financial assets classified as held for sale 0.5 0.5

Restricted Cash and other non-current assets 147.9 389.9

Other receivables 174.4 243.1

Deferred taxes 2,088.4 2,017.8

Derivative financial instruments at fair value 150.2 134.3

CURRENT ASSETS 5,437.5 5,451.5

Assets classified as held for sale 9.0 2.3

Inventories 450.2 426.6

Trade & other receivables 2,503.2 2,672.7

Trade receivable for sales and services 1,979.2 2,083.3

Other receivables 468.0 539.0

Taxes assets on current profits 56.0 50.4

Cash and other financial investments 2,462.8 2,349.1

Infrastructure project companies 237.6 188.4

Restricted Cash 31.9 24.0

Other cash and equivalents 205.7 164.4

Other companies 2,225.2 2,160.8


TOTAL ASSETS 23,410.2 22,951.3

EQUITY 6,458.5 6,246.4

Capital & reserves attributable to the Company´s equity holders 6,447.4 6,113.3

Minority interest 11.1 133.1

DEFERRED INCOME 336.5 292.1

NON-CURRENT LIABILITIES 11,305.7 10,806.4

Pension provisions 101.6 110.5

Other non current provisions 1,035.7 1,010.1

Financial borrowings 6,987.5 6,694.8

Financial borrowings on infrastructure projects 5,726.4 5,503.0

Financial borrowings other companies 1,261.1 1,191.8

Other borrowings 201.2 179.3

Deferred taxes 1,339.6 1,297.8

Derivative financial instruments at fair value 1,640.1 1,513.9

CURRENT LIABILITIES 5,309.5 5,606.4

Financial borrowings 1,232.4 1,214.4

Financial borrowings on infrastructure projects 1,189.4 1,145.0

Financial borrowings other companies 43.0 69.4


Trade and other payables 3,511.8 3,882.3

Trades and payables 2,932.0 3,222.8

Deferred tax liabilities 87.9 51.1

Other liabilities 491.8 608.3

Trade provisions 509.2 502.4

TOTAL LIABILITIES & EQUITY 23,410.2 22,951.3

Balance sheet 2011 comparative information has been revised according to p.49 of IFRS 3, as the provisional accounting of PNI business combination has been adjusted within the one year period after acquisition date as required by the above mentioned IFRS


13

NET CONSOLIDATED DEBT

At EUR898mn, the net cash position excluding infrastructure projects is

similar to the situation in December 2011 (EUR907mn). The variation vs.

December 2011 is explained by the net investments in the period (-

EUR191mn), dividend payments (-EUR203mn) and the seasonality of

payments, which include payments from local and regional

administrations, and the cash generation during the first half of the year.

Ferrovial was also in receipt of dividends from Toll roads and Airports

totalling EUR207mn.

Net project debt reached EUR6,508mn. This variation was principally due

by the investments made in infrastructure.

The group’s net debt reached EUR5,609mn.

This figure includes EUR1,825mn of net debt related to motorways under

construction (the NTE, the LBJ and the SH130). It also includes

EUR1,099mn related to the R4 and Ocaña-La Roda radial motorways that

have filed for investor protection.

Sep-12 Dec-11

NCP ex-infrastructures projects 898.4 906.6

Toll roads -6,140.6 -5,691.9

Others -367.0 -385.6

NCP infrastructures projects -6,507.6 -6,077.5

Net Cash Position -5,609.2 -5,170.9

INVESTMENT IN NEW MOTORWAYS

YTD Total

SH130 7.1 97.6

NTE 27.7 90.7

LBJ 48.8 121.3

Total 83.6 309.6

CORPORATE CREDIT RATING

In August 2011 for the first time, the rating agencies Standard&Poor’s

and Fitch Ratings gave an opinion on Ferrovial’s credit rating, which in

both cases was in the Investment Grade category.

Both agencies affirmed these ratings in the second quarter of 2012:

Agency Rating Outlook

S&P BBB- Stable

FITCH BBB- Stable


14

APPENDIX I: SIGNIFICANT EVENTS

BAA issues a press release regarding the Court of Appeal’s

decision to reject BAA’s appeals against the Competition

Commission’s resolutions that require the sale of Stansted

Airport.

(1 February 2012)

BAA announces the sale of Edinburgh Airport.

(23 April 2012)

BAA announces that it has agreed the sale of 100% of its stake in

Edinburgh Airport Limited to Global Infrastructure Partners ("GIP") for

GBP807.2mn.

Colin Matthews, chief executive of BAA, said: "Edinburgh Airport and

its team have been part of BAA for a long time and we are proud of

its achievements. We wish the new owners every success and are

confident the airport will continue to flourish. BAA will continue to

focus on improving passengers' journeys at Heathrow and its other

airports".

Budimex announces a write-down of its stake in PNI.

(28 June 2012)

The Budimex Board announced its decision to write down the value of

its stake in PNI by PLN182,267mn.

Budimex S.A. acquired 100% of PNI for PLN225,017mn. The current

valuation is the consequence of the recognition of the loss of the

contracts awarded before the acquisition date and whose execution

period will end in 2014.

Budimex will recognise the impairment to its stakes in the company in

the 2011 financial year and adjust the results of the previous years.

The consequence of the current valuation of the company on the

consolidated financial statements of the Budimex group will be a

PLN180,017mn reduction in the attributable goodwill at the acquisition

date. The difference between the two figures comprises the

capitalised transaction costs in the individual financial statements of

Budimex SA.

As a consequence of the above-mentioned losses, there is a

requirement to allocate the PLN40,000,000 arising on the capital

increase dated 14 June 2012 to the company’s current activities rather

than to PNI’s investments in material fixed assets as had been

originally intended.

Additionally, independently of the actions already undertaken,

including the very successful voluntary redundancy programme,

Budimex S.A. intends to introduce a recovery programme at PNI

which will include reorganising PNI’s structures, changing

management methods and minimising the losses on unprofitable

contracts that the company is currently executing.

The introduction of the recovery programme is a demonstration of the

conviction of the Budimex group’s management that the programme

is a viable exercise. The Budimex Board is convinced that the success

of the action taken will confirm that its long-term strategy in the

railway segment is correct, as is its pioneering participation in the

macroeconomic process of privatisation of this segment of the Polish

economy.

Ferrovial reaches an agreement to sell 10.62% of FGP Topco

Ltd. (the BAA holding company).

(17 August 2012)

Ferrovial, which indirectly owns 49.99% de BAA Ltd. (BAA), reaches

an agreement to sell 10.62% of FGP Topco Ltd. (the BAA holding

company) to Qatar Holding LLC for GBP478mn (EUR607mn). As part

of the same transaction, other shareholders in FGP Topco will sell

9.38% at the same price per share, taking the total value of the

transaction to GBP900mn (EUR1,144mn). As a consequence, Qatar

Holding LLC will indirectly own 20% of BAA, and Ferrovial’s indirect

holding in BAA will fall to 39.37%. The transaction is subject to the

approval of the European competition authorities and the deal is

expected to be closed before year-end.

The managers of the Radial 4 have agreed to seek creditor

protection.

(14 September 2012)

The Boards of Autopista Madrid Sur Concesionaria Española, S.A. and

Inversora de Autopistas del Sur, S.L., the management companies of

Madrid’s Radial 4, in which Ferrovial, S.A., Sacyr Vallehermoso, S.A.

and Caja Castilla La Mancha Corporación, S.A., have indirect stakes,

have agreed to file for court protection from their creditors.

The Radial 4 project has been directly affected by exogenous factors

(substantially lower traffic than expected, higher expropriation costs

than expected, economic crisis, etc.) that under current conditions

prevent the concession from meeting various payment commitments

to expropriated landowners and financial entities. An important factor

in this decision has been that the intended potential legal supports for

the concession were not correctly implemented by the contracting

entity.

In view of all the above, the said companies have taken the above-

mentioned and legally binding decision, in the confidence that a

solution will be reached within the coming months.

As noted in the group’s consolidated 2011 report and accounts, the

investment relative to this project are already fully-provisioned. There

is not expected to be any significant impact on the group’s accounts

whatsoever.


15

EVENTS AFTER THE CLOSE

The management companies of the AP-36 Ocaña–La Roda

have agreed to file for creditor protection.

(19 October 2012)

Autopista Madrid Levante Concesionaria Española, S.A.U. and

Inversora de Autopistas de Levante, S.L., the management companies

for the toll motorway AP-36 Ocaña–La Roda, indirectly owned by

Ferrovial, S.A. (55%) together with Sacyr Vallehermoso, S.A. (40%)

and Caja de Ahorros y Monte de Piedad de Gipuzkoa y San Sebastián,

S.A. (5%), have agreed to seek creditor protection. The application

has been made to the competent court.

The AP-36 motorway has been directly affected by exogenous factors

(substantially lower traffic than expected, economic crisis and

increased capacity on alternative routes, etc.), making it the

impossibility of meeting various payment commitments to financial

entities imminent.

An important factor in this decision has been that the intended

potential legal supports for the concession were not correctly

implemented by the contracting entity.

In view of all the above, the said companies have taken the above-

mentioned, in the confidence that a solution will be reached within the

coming months.

The investment relating to this project was fully-provisioned in the

group’s consolidated 2011 accounts. There is not expected to be any

significant impact on the group’s 2012 accounts whatsoever.


16

APPENDIX II: PRINCIPAL CONTRACT AWARDS

CONSTRUCTION

407 East Extension, Canada.

Padornelo Tunnel, Adif Infraestructuras, Spain.

T3 integrated baggage, design, build and integration, Heathrow

Airport, UK.

Espiño Tunnel, Adif Infraestructuras, Spain.

Assembly Olmedo-Pedralba railway, Adif Infraestructuras, Spain.

Terminal 2b Stand and Taxilanes, Heathrow, UK.

Construction of PR9 Ponce, Puerto Rico.

250 Interbigeco residential units, Alcalá youth housing, Spain.

Cerrejón Port, Carbonera del Cerrejón, Colombia.

Electricity interconnection France-Spain, France.

Leganés Tecnology Urbanization, Spain.

Refurbishment of Torre Pelli offices, Seville, Spain.

Resurfacing work, PR-30, Puerto Rico.

Mto. Idam Valdelentisco, Acuamed, Spain.

Tiemblo-Cebreros gas pipeline, Spain.

Gornal sports complex, Hospitalet municipality, Spain.

Extensions to San Jose ss.cc. College, Spain.

67 residential units in Valdebebas, Madrid, Spain.

Assembly of Sagrera-Mollet railway, Adif Infraestructuras, Spain.

Port works at Grimaldi Terminal, Barcelona, Spain.

Emerg. Highways PR-1 and PR-842, Puerto Rico.

Building at Universidad Autónoma, Barcelona, Spain.

Segovia Norte gas pipeline, Spain.

84 residential units in Dehesa Vieja, Spain.

Repairs to Ulea Tunnel, Confederación Hidrográfica del Segura, Spain.

51 residential units in Valdebebas, Madrid, Spain.

Thermal dryer in Siedlce, Polonia.

Castresoler-Felanitx gas pipeline for Endesa, Spain.

Moralets II chimney for Endesa Generation, Spain.

Brisa No De Soure, Brisa Concessao Rodoviaria, Portugal.

80 residential units in Parla East, Spain.

Water supply, municipality of Pombal, Portugal.

BUDIMEX

Highway as far as the Dabrowica junction, Lublinie, Poland.

C/Kruczkowskiego Complex, Warsaw, Powisle Park, Poland.

Waste treatment plant, Bialystok, Poland.

Remodelling a tramline in Cracow, Poland.

Stawiski ring road, Poland.

Road widening, Voivodía nº 892 Zagorz - Komancza, Poland.

Neptun Office Centre, Bnn, Poland.

Coastal defences, Darlowo, Poland.

Teaching centre at the Chemistry Faculty, Politechnika Poznanska,

Poland.

Highway Voivodía 822 Lublin – Swidni Airport, Poland.

Parking lot in Hala Stulecia, Poland.

Affected services, walkways and parking at Lublin Terminal, Poland.

Torun Technology Park, Tarr Centrum Innowacyjnosci, Poland.

Zoliborz Office Building, Szamocka, Poland.

Warsaw University rehabilitation centre, Poland.

Estonia - Narva – energy blocks, Alstom Estonia, Poland.

Novarka - Ucrania, Novarka - Vinci, Poland.

Infrastructure for the Economic Zone, Zarzad Dróg I Mostów W

Lublinie, Poland.

Smolna Street urbanization Phase II, Budimex Nieruchomosci, Poland.

Ewa Peninsular in the port of Szczecin, Poland.

Vte Mielec on Highway 985, Poland.

Construction work in June 2012, Germany.

Liquefied gas terminal in Swinoujscie, Poland.

WEBBER

US 290 Harris City Const 5 ML, TxDOT, USA.

US-59 Angelina, TxDOT, USA.

Rockwall County IH30, TxDOT, USA.

Homestead Grade Separation, City of Houston, USA.

SERVICES

CESPA

Contract award for two waste treatment plants for the Juan el Grande

and Salto del Negro environmental complexes in the Canary Islands.

Contract renewal for highway cleading and urban waste collection for

the municipality of San Vicente del Raspeig.

Renewal of contract for green space maintenance and cleaning in

various districts in Madrid (Centre, Arganzuela, Retiro, Salamanca,

Tetuán, Chamartín, Chamberí, Vallecas, Moratalaz and Vicálvaro).

Extension of highway cleaning and urban waste collection contractfor

the municipality of Getxo.

Extension of contract for highway cleaning, urban waste and solid

waste collection for the city of Guadalajara.

Contract renewal for the industrial management of metal scrap and

waste at the Ford vehicle plant.

FERROSER

Ministry of Development contract award for the maintenance of

various sections of the State highway network (the cities of Zaragoza,

Madrid, Valencia, Salamanca, Segovia, Valladolid and Badajoz).

New contract award for telephone services for the Madrid Town Hall.

New contract award for the integrated building management for the

Universidad Europea de Madrid.

Contract extension for cleaning at the La Paz university hospital.

Ongoing energy services for the external lighting for the municipality

of Soto del Real, Madrid.

Delphi maintenance renewal, Sant Cugat.

Reina Sofía Hospital cleaning services, Murcia.

AMEY

Infrastructure maintenance services for the County of Sheffiefd.

Installation contract for electricity supply to railways in Norfolk.

Contract for maintenance and cleaning services for the Home Office

building.

Extension of infrastructure maintenance contract for the County of

Hampshire.

Infrastructure maintenance for the County of Calderdale.

Consultancy contract for maintenance of general traffic services in

Scotland.

Various consultancy and technical advisory contracts for railway

signalling.


17

APPENDIX III: EXCHANGE-RATE MOVEMENTS

Exchange-rate Last

(Balance sheet) Change 12/11

Exchange-rate Mean (P&L)

Change 12/11

GBP 0.7971 -4.6% 0.8112 -7.3%

US Dollar 1.2876 -0.6% 1.2862 -9.3%

Canadian Dollar 1.2666 -3.9% 1.2861 -7.2%

Polish Zloty 4.1133 -7.8% 4.1872 3.7%

Exchange rates are expressed in units of currency per euro, with negative variations signifying euro depreciation and positive variations

euro appreciation.

INVESTOR RELATIONS DEPARTMENT

ADDRESS: PRÍNCIPE DE VERGARA 135 - 28002 MADRID

TELEPHONE: +34 91 586 25 65

FAX: +34 91 586 26 89

E-MAIL: [email protected]

WEB: HTTP://WWW.FERROVIAL.COM

Important information

This document contains statements regarding the Company’s future intentions, expectations and forecasts at the time of writing.

These statements are based on projections and financial estimates with underlying assumptions, announcements relating to plans,

objectives and expectations that refer to various aspects, including the growth of the various lines of business and the global business,

market share, the Company’s results and other aspects relating to its activities and situation.

These estimates, projections and forecasts are not in themselves guarantees of future performance as they are subject to risks,

uncertainties and other important factors that could result in the development and final results differing from those contained in these

estimates, projections and forecasts.

This should be taken into account by all individuals or institutions that might have to take decisions or form or transmit opinions

relating to stocks and shares issued by the Company, and in particular, by the analysts and investors who consult this document. All

interested parties are invited to consult the documentation and information publicly available or filed by the Company with stock

market supervisory authorities and, in particular, the information filed with the CNMV (the Spanish stock market regulator).

january - september 2012 results - september 2012 results 1 motorways services construction airports...

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