Financial Review

Consolidated Cash Flow
DEC-20 EXINFRASTRUCTURE PROJECTS CASH FLOW INFRASTRUCTURE PROJECTS CASH FLOW ADJUSTMENTS TOTAL CASH FLOW
EBITDA 203 384 587
Dividends received 458 -159 299
Birmingham cash flow -16 -16
Construction provision variation 37 37
    US Construction provision (*)
    US Construction provision application (*) -98 -98
    Other Construction provision variation 135 135
Working capital variation (account receivables, account payables and others) 157 40 0 198
Operating flow (before taxes) 839 425 -159 1,105
Tax payment -89 -12 -101
Tax return from previous exercises
Operating Cash Flow 750 413 -159 1,004
Investments -286 -128 18 -397
Divestments 501 501
Investment cash flow 215 -128 18 104
Activity cash flow 965 284 -141 1,108
Interest flow -21 -229 -250
Capital flow from Minorities 17 20 -18 19
Ferrovial shareholder remuneration -377 -377
    Scrip dividend -122 -122
    Treasury share repurchase -255 -255
Other shareholder renumeration for subsidiary minorities -26 -266 159 -133
Forex impact -95 296 201
Variation of Bridge Loans (project financing)
Changes in the consolidated perimeter
Other debt movements (non cash) -104 -49 -153
Financing cash flow -605 -228 141 -692
Net debt variation 360 56 416
Net debt initial position 1,631 -4,588 -2,957
Net debt final position 1,991 -4,532 -2,541
DEC-19 EXINFRASTRUCTURE PROJECTS CASH FLOW INFRASTRUCTURE PRROJECTS CASH FLOW ADJUSTMENTS TOTAL CASH FLOW
EBITDA -167 580 413
Dividends received 729 -199 529
Birmingham cash flow -204 -204
Broadspectrum cash flow 45 45
Construction provision variation 330 330
    US Construction provision (*) 345 345
    US Construction provision application (*) -143 -143
    Other Construction provision variation 129 129
Working capital variation (account receivables, account payables and others) 77 -87 -10
Operating flow (before taxes) 810 493 -199 1,104
Tax payment -25 -36 -61
Tax return from previous exercises
Operating Cash Flow 785 457 -199 1,043
Investments -295 -157 60 -392
Divestments 484 115 599
Investment cash flow 189 -41 60 207
Activity cash flow 974 416 -140 1,250
Interest flow -7 -239 -246
Capital flow from Minorities 13 117 -60 70
Ferrovial shareholder remuneration -520 -520
    Scrip dividend -238  -238
    Treasury share repurchase -282 -282
Other shareholder renumeration for subsidiary minorities -18 -306 199 -124
Forex impact -28 -66 -94
Variation of Bridge Loans (project financing)
Changes in the consolidated perimeter -2 422 419
Other debt movements (non cash) -16 -47 -63
Financing cash flow -579 -119 140 -558
Net debt variation 395 297 692
Net debt initial position 1,236 -4,885 -3,649
Net debt final position 1,631 -4,588 -2,957

(*) Related to the provision registered in 1Q 2019 corresponding to three contracts in the US.

EX-INFRASTRUCTURE PROJECT CASH FLOW

Activity cash flow*

The ex-infrastructure pre-tax activity cash flow is as follows:

DEC-20 OPERATING CF* NET INVESTM. CF* ACTIVITY CF*
Toll Roads 340 -23 317
Airports 29 -17 12
Construction 247 46 293
Services 358 217 575
 Other -135 -8 -143
Total 839 215 1,054

*Before Corporate Income Tax. Operating cash flow in Toll Roads and Airports refers to dividends.

DEC-19 OPERATING CF* NET INVESTM. CF* ACTIVITY CF*
Toll Roads 494 408 902
Airports 183 -8 175
Construction 132 -44 87
Services 31 -132 -101
 Other -29 -34 -63
Total 810 189 1,000

*Before Corporate Income Tax. Operating cash flow in Toll Roads and Airports refers to dividends.

Operations cash flow

At 31 December 2020, cash flow from ex-infrastructure project operations totaled EUR839mn (before tax), above EUR810mn recorded in 2019, which was impacted by the Construction provision registered in 1Q 2019. 2020 Operating cash flow has been impacted by the lower dividends distribution from Toll Roads and Airports affected by COVID-19 impact, partially offset by the improved performance of the Construction operating cash flow and the positive performance of the Services operating cash flow.

Operating cash flow DEC-20 DEC-19
Dividends from Toll Roads 340 494
Dividends from Airports 29 183
Construction 247 132
Services 358 31
Other* -135 -29
Operating flow (before taxes) 839 810
Tax payment -89 -25
Total 750 785

The entry “Others” includes the operations cash flow relating to Broadspectrum and Corporate Business, Airports and Toll Roads.

 

Breakdown of cash flow from Construction and Services:

Construction DEC-20 DEC-19
EBITDA 227 -286
EBITDA from projects 14 15
EBITDA Ex projects 213 -301
Construction provision variation 37 330
     US Construction provision (*) 0 345
     US Construction provision application (*) -98 -143
     Other Construction provision variation 135 129
Dividends received 0 5
Working capital variation (account receivables, account payables and others) -3 97
      Changes in factoring -1 -4
      Land purchases 2 -4
      Working capital -4 105
Operating Cash Flow before Taxes 247 132

(*) Related to the provision registered in 1Q 2019 corresponding to three contracts in the US.

Services DEC-20 DEC-19
EBITDA 186 305
EBITDA from projects 69 76
EBITDA Ex projects 117 321
BMH cash flow -16 -204
Dividends received 89 47
Working capital variation (account receivables, account payables and others) 251 -88
Changes in factoring -63 6
Pension payments UK -21 -16
Operating Cash Flow before Taxes 358 31

The following table shows a breakdown of the Services business:

(EUR million) SPAIN UK INTERNATIONAL TOTAL
EBITDA ex-infrastructure 145 -55 26 117
BMH cash flow 0 -16 0 -16
Dividends received 76 10 2 89
Changes in factoring -63 0 0 -63
Pension scheme payments 0 -21 0 -21
Working captial 96 150 6 251
Op. cash flow ex-Taxes 255 69 34 358

 

Breakdown of cash flow from Toll Roads and Airports:

The revenue from Toll Roads operations amounted to EUR340mn in 2020 (EUR494mn in 2019), resulting from dividends and repaid shareholders’ funds from companies owning toll road infrastructure projects. Other toll roads includes the compensation for the cancellation related to Autostrada Poludnie project (EUR19mn).

Dividends and Capital reimbursements DEC-20 DEC-19
407 ETR 160 309
LBJ 109 0
NTE 25 166
Irish toll roads 0 1
Portuguese toll roads 9 13
Australian toll roads 7 0
Spanish toll roads 4 2
Other 26 3
Total 340 494

Dividends and capital reimbursements from Airports (EUR29mn) were lower than achieved in 2019 (EUR183mn).

Airports DEC-20 DEC-19
HAH 29 145
AGS 0 17
Others 0 21
Total 29 183

Investment cash flow

DEC-20 INVESTMENT DIVESTMENT INVESTMENT CF
Toll Roads -125 102 -23
Airports -17 0 -17
Construction -51 98 46
Services -83 300 217
Other -10 2 -8
Total -286 501 215
DEC-19 INVESTMENT DIVESTMENT INVESTMENT CF
Toll Roads -68 476 408
Airports -8 0 -8
Construction -51 7 -44
Services -133 1 -132
Other -34 0 -34
Total -295 484 189

The net investment cash flow in 2020 (EUR215mn) includes:

  • Investments reached -EUR286mn, below -EUR-295mn in 2019.
  • Divestments reached EUR501mn in 2020 (EUR484mn in 2019), most noteworthy:
    • EUR300mn from the sale of Broadspectrum.
    • EUR100mn from the divestment of Portuguese toll roads (EUR72mn pending).
    • EUR58mn from Budimex 5% stake sale.
    • EUR33mn from Webber’s Asphalt Plant sale

Financing cash flow

Financing cash flow includes:

  • Shareholder remuneration cash flow: -EUR-377mn in 2020, including -EUR-122mn from the scrip dividend and -EUR-255mn from the treasury share repurchase program in 2020.
  • Net interest payments reached EUR-21mn in 2020.
  • FX impact (-EUR95mn), primarily from the translation of cash balances held in USD and PLN.
  • Other non-cash flow related movements (-EUR104mn), that included the net cash position held by Broadspectrum (EUR78mn), along with the book debt movements that do not affect cash flow, such as interest that has been accrued and remains unpaid, mainly resulting from interest accrued from corporate bonds.

Net position from discontinued operations

The net cash position from discontinued operations stood at EUR216mn of debt at 31 December 2020.

INFRASTRUCTURE PROJECT CASH FLOW

Operations cash flow

As regards cash flows for companies that own infrastructure project concessions, these primarily include revenues from those companies that are currently in operation, though they also include VAT refunds and payments corresponding to projects currently in the construction phase.

The following table shows a breakdown of cash flow operations for infrastructure projects.

(EUR million) DEC-20 DEC-19
Toll Roads 313 386
Other 100 71
Operating cash flow 413 457

Investment cash flow

The following table shows a breakdown of the investment cash flows for infrastructure projects, mainly payments made in respect of CapEx investments over the year.

(EUR million) DEC-20 DEC-19
LBJ -2 -3
NTE -5 -3
NTE 35W -101 -135
I-77 -20 -94
Portuguese toll roads -1 0
Spanish toll roads -1 -5
Others 0 0
Total toll roads -129 -240
Others -21 106
Total projects -150 -135
Equity Subsidy 22 93
Total investment cash flow (projects) -128 -41

Financing cash flow

Financing cash flow includes the payment of dividends and the repayment of equity by concession-holding companies to their shareholders, along with the payments for share capital increases received by these companies. In the case of concession holders which are fully integrated within Ferrovial, these amounts represent 100% of the amounts paid out and received by the concession-holding companies, regardless of the percentage share that the Company holds in such concessions. No dividend or Shareholder Funds’ repayment is included for equity-accounted companies.

The interest cash flow refers to the interest paid by the concession-holding companies, together with other fees and costs closely related to the acquisition of financing. The cash flow for these items relates to interest costs for the period, along with any other item that represents a direct change in the net debt amount for the period.

(EUR million) DEC-20 DEC-19
Spanish toll roads -42 -54
US toll roads -144 -132
Portuguese toll roads -14 -14
Total toll roads -200 -201
Other -29 -38
Total -229 -239

The financing cash flow also includes the impact that changes in the interest rate have had on the debt held in foreign currency, which in 2020 was a positive impact in the amount of +EUR296mn, primarily as the result of the appreciation of the euro against USD, which has had a significant effect on the net debt figure for the US toll roads.