Consolidated P&L

Revenues stood at EUR6,341mn (+9.9% LfL) on the back of higher Construction revenues (+11.4% LfL), partially offset by lower contribution from Toll Roads (-19.2% LfL).

EBITDA: EUR409mn (EUR121mn in 2019, negatively affected by –EUR345mn provision registered in Construction in 1Q 2019). EBITDA impacted by the -EUR22mn one-off cost related to the restructuring plan carried out by the Company.

Depreciation: +9.9% in 2020 (+0.1% LfL) to EUR198mn.

Impairments and fixed asset disposals: EUR15mn in 2020 including the positive impact related to Autema (EUR10mn) compared to EUR460mn in 2019 (impacted by the capital gains from the sale of the 80% stake in Ausol).

Financial result: higher financial expenses in 2020 vs 2019.

• Infrastructure projects: -EUR197mn expenses (-EUR263mn in 2019) improvement on the back of the savings from NTE refinancing at the end of 2019 and Ausol deconsolidation, these impacts were partially offset by the I-77 full-year contribution and LBJ refinancing implying expending of activated transaction costs from the original PAB issuance.
• Ex-infrastructure projects: -EUR35mn of financial expenses 2020 compared to EUR70mn income in 2019, mainly due to the performance of the hedges provided by equity swaps linked to payment plans, with no cash impact, along with the slight increase of financial expenses due to higher cash availability, partially offset by the positive performance of exchange rate derivatives. The hedges on the equity swaps linked to payment plans led to expenses of –EUR10mn in 2020, due to the negative performance of the share price as compared with its positive performance in 2019:

Equity-accounted result at net profit level, equity-accounted companies contributed -EUR378mn after tax (2019: EUR296mn).

Tax: the corporate income tax for 2020 amounted to EUR28mn (vs -EUR47mn for 2019). There are several impacts to be considered when calculating the effective tax rate; among which the material and/or significant ones are:

• Equity-accounted companies’ profit must be excluded, as it is already net of tax (-EUR378mn).
• Losses and tax credits that, following accounting prudence criteria, do not imply the recognition of the full tax credits for future years (EUR99mn).

Excluding the aforementioned adjustments in the tax result, and adjusting for the impact from previous years spending (-EUR46mn), the resulting effective corporate income tax rate is 15%.

Net income from continuing operations stood at -EUR356mn in 2020 (EUR457mn in 2019). This profit includes a series of impacts, notable among which were:

• Fair value adjustments for HAH derivatives: -EUR46mn (EUR31mn in 2019), primarily impacted by the negative evolution of HAH’s derivatives mainly inflation swaps that hedge RAB and revenue exposure. Heathrow is seeking clarification from IFRIC regarding hedge accounting treatment.
• Exceptional costs related at HAH and AGS related to restructuring plans (HAH -EUR32mn and AGS -EUR3mn) and a deferred tax rate regularization (HAH -EUR28mn and AGS -EUR9mn).
• -EUR22mn one-off cost related to the Corporate restructuring program.
• EUR6mn positive impact related to Autema change of accounting method upon the Supreme Court dismissal.

Net income from discontinued operations stood at -EUR3mn which includes a negative result recorded from Broadspectrum sale -EUR64mn, mainly due to the reclassification to the P&L of reserves corresponding to translation differences net of hedges according to IAS 21. Additionally, a fair value provision was recognized in Amey (-EUR34mn) and International (-EUR25). Services business in Spain has registered a positive result of +EUR121mn in 2020 (without amortization, as per IFRS 5). Ferrovial will continue to closely monitor the impact of the evolution of the COVID-19 on discontinued activities fair value as far as a higher evidence about the impact of the outbreak in these activities is obtained.