Business Performance


Ferrovial results January-December 2020

Further increase of Ferrovial’s record high liquidity levels (c.EUR8bn) and net cash position ex-infrastructure (c.EUR2bn):

  • Strong cash flow generation in Construction (Activity CF pre-tax EUR293mn) and Services (ACF pre-tax EUR575mn).
  • Dividends received from projects reached EUR458mn including the first dividend distributed by LBJ (EUR109mn), NTE dividend (EUR25mn), ETR 407 (EUR160mn) or Heathrow (EUR29mn).
  • Divestments (EUR501mn) include: Broadspectrum (EUR300mn), Norte Litoral & Algarve (EUR100mn inflow, EUR72mn pending) and 5% of Budimex (EUR58mn).
  • Focus on protecting the company’s liquidity and further strengthening its financial position, at parent and asset level, remains.

Operating performance impacted by COVID-19. Mitigating measures at parent and asset level:

  • Toll road traffic impacted by lockdowns and limitations to mobility though performance improved when restrictions eased.
  • Air traffic affected by UK travel restrictions. Mitigating measures included Opex reduction of GBP303mn at Heathrow for 2020.
  • Construction: high production levels with significant margin improvement (EBIT mg 2.3%) including -EUR49mn COVID-19 impact.
  • Services (discontinued activity) EBITDA impacted by COVID-19 in -EUR102mn but showing growth ex-COVID-19.

Operational efficiencies: Reducing opex, reviewing capex plans and restructuring.

  • Corporate restructuring underway according to plan; overheads streamlining and saving initiatives across the Group.
  • Streamlining operations (Heathrow, AGS). Capex plans deferred or cancelled.


2020 results have been impacted by COVID-19 pandemic. A global pandemic which has had an unprecedented impact and led to measures taken by governments across the world to reduce social contact and mobility.

Throughout the COVID-19 pandemic, Ferrovial has undertaken, and continues to do so, all necessary measures to safeguard the health and safety of its employees and clients as its main priority.

The Company remains focused on protecting and further strengthening its liquidity and financial position. As of December 2020, liquidity ex-infrastructure level stood at a record c.EUR8bn, including EUR1.3bn available liquidity lines. Net cash ex-infra stood at EUR1,991mn (including discontinued operations). Measures taken in 2020 include:

  • On May 14th, Ferrovial issued a EUR650mn 6-year corporate bond with a coupon of 1.38%. On June 24th, an additional EUR130mn tap of this bond took place.
  • Syndicated Revolving Credit Facilities were drawn for an amount of c.USD274mn. The liquidity facilities limit is EUR340mn.
  • ECB Pandemic Emergency Purchase Program (PEPP): EUR575mn issued through ECP Program, with 6 to 12 months maturities. Another EUR516mn ECP issued at negative rates.
  • On November 5th, Ferrovial issued a EUR500mn 8-year bond at 90 basis points over the mid-swap, (i.e. a coupon of 0.54%). The deal was oversubscribed 7-fold.

Ferrovial is strongly committed to supporting the Community to face the current pandemic. Ferrovial created a fund, “Ferrovial together COVID-19”, to provide medical equipment, research projects for vaccines, and providing food to vulnerable groups.

Operationally, the COVID-19 pandemic impacted Ferrovial’s activities since mid-March, especially on air and road traffic given restrictions to mobility and quarantines. The essential activity classification of both Construction and Services has contributed to their stronger performance throughout the year.

  • Toll Roads: traffic levels reached their lowest point in early April, followed by a steady recovery since then, although a surge in COVID-19 cases at year-end led to new lockdowns and tighter restrictions, negatively impacting traffic.
    • 407 ETR: -45.3% in 2020.
    • Texas Managed Lanes: NTE -26.1%, LBJ -37.6% and NTE35W -14.3% in 2020.
  • Airports: traffic was strongly impacted by COVID-19 in 2020:
    • Heathrow: Passenger numbers fell by -72.7% as airlines reduced flights to a number of countries due to COVID-19 outbreaks, border closures and quarantine measures. Heathrow has available cash and committed facilities amounting to GBP3.9bn, sufficient liquidity to meet all payment obligations until at least April 2022 in a no- revenue scenario, or well into 2023 under HAH’s traffic forecast. In July, Heathrow Finance creditors approved a waiver for the ICR covenant for 31 December and an amendment of the RAR covenants to 95.0% and 93.5%, for 2020 and 2021, respectively. The airport raised GBP1.7bn debt in 2020. In addition, the asset has strengthened its capital structure through Subordinated Debt (ADI Finance 2 Ltd facility) of GBP750mn. Lastly, HAH reprofiled a proportion of existing interest rate and inflation swaps and completed a series of new interest rate swap transactions which will help reduce interest payments over the next few years.
    • AGS have also seen a strong impact in their traffic levels ( -75.9% 2020), hit by COVID-19 and the Flybe collapse. In June, AGS agreed a waiver of the requirement to comply with the Financial Covenants (Leverage Ratio and DSCR) in the Facilities Agreement for June and December 2020. December’s waiver was subject to compliance with some liquidity conditions that were met by AGS. There is an ongoing dialogue between AGS, shareholders and lenders to support the Company in the coming months. The total cash balance was GBP18mn at 31 December 2020.
  • Construction: Revenues have been impacted by an estimated amount of -EUR300mn, given the stoppages and the slowdown of works, widely distributed throughout all geographies. The impact at EBIT level (-EUR49mn) was similar to 9M 2020 (-EUR44mn), related to lockout, delays, acceleration costs and additional health and safety material.
  • Services: COVID-19 impact in 2020 was –EUR102mn in EBITDA. In Amey, the activity with higher impact from the pandemic, the effects were seen later and were linked to delays in non-essential works, lower industrial activity & restrictions to mobility. The most impacted activities in Spain were services related to transport and infrastructure maintenance, due to mobility restrictions.


The company is adapting to the current pandemic situation through several cost reduction, restructuring and capex revision measures:

  • Ferrovial is advancing with its corporate restructuring program. The new operating model will allow cost reductions of EUR50mn a year from 2021 (EUR26mn in 2020). On the back of this plan, a -EUR22mn one-off cost was registered in 2020. Additional opex savings of EUR23mn related to COVID-19 were achieved in 2020.
  • Toll Roads: all toll roads have undertaken a revision of opex and capex plans (EUR41mn proportional savings). In terms of opex, they have adjusted maintenance, collection costs, reduced marketing and advertising programs; while maintaining the levels of quality and safety. All non- essential capex plans have been delayed.
  • Airports: Heathrow and AGS have taken measures to soften the impact of COVID on P&L and preserve liquidity, while ensuring an environment where passenger and staff security and safety remain the top priority. In terms of opex, measures include organization redesigning, renegotiation of contracts with suppliers and removing all non-essential costs. In 2020, Heathrow reduced opex by GBP303mn and capex by GBP700mn. The airport incurred in GBP92mn of exceptional costs relating to the business transformation program. AGS reduced opex by GBP37mn and capex by GBP25mn in 2020, along with an exceptional cost related to its restructuring process of GBP7mn.
  • Construction: measures to mitigate the impact include cost reduction (c.EUR3mn savings) and preparation of compensation claims from the impact of delays and/or the execution cost of projects mainly in contracts with force majeure or change in law.
  • Services: measures include the utilization of flexibility measures provided by the different governments such as temporary layoffs, furloughs, tax payment delays and advanced collection payments from public clients. Additionally, Services implemented cost reduction initiatives of c.EUR110mn (in proportional terms), including savings from investments delays in Spain (EUR15mn) and from temporary layoffs (EUR49mn).


  • 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 2019, which was impacted by the -EUR345mn provision registered in Construction in 1Q 2019). 2020 EBITDA was impacted by a -EUR22mn one-off cost related to the corporate restructuring plan.


Total dividends from projects received by Ferrovial reached EUR458mn in 2020 (vs EUR729mn in 2019):

  • 407 ETR: distributed CAD562.5mn in 2020, EUR160mn for Ferrovial. 407 ETR Board will continue to monitor the current pandemic situation and will review any further potential dividend distribution to Shareholders, as appropriate.
  • Managed Lanes: LBJ distributed its first dividend of USD229mn (EUR109mn FER’s share). NTE also distributed a regular dividend of USD46mn (EUR25mn FER’s share).
  • Heathrow: distributed GBP100mn in 1Q 2020. Dividends distributed to Ferrovial amounted to EUR29mn. Dividends from Heathrow are not permitted until RAR is below 87.5%.
  • Other toll roads: EUR45mn (EUR19mn in 2019).
  • Services: EUR89mn dividends from projects, including EUR54mn dividend from EMESA, after its refinancing (EUR47mn Services dividends in 2019).


Ferrovial, via Cintra, completed the refinancing of LBJ’s Private Equity Bonds (PABs) with the issuance of new bonds (USD622mn proceeds). This PABs refinancing agreement has led to a lower cost of debt (new PABs 2.92% “yield to maturity” vs previous 7-7.5% old PABs coupon).


  • I-77 Stake increase: In November, Ferrovial agreed the acquisition of an additional 15%, increasing its stake to 65.1%. The operation is valued at USD78mn (EUR68mn) plus a deferred payment based on the asset’s performance in June 2024 estimated at USD2.7mn (c. EUR2.3mn).
  • Portuguese toll roads sale: Following the company’s asset rotation strategy for mature concessions, Ferrovial sold stakes in two Portuguese availability-based PPP roads. On September 14th, Ferrovial reached an agreement, through Cintra, to sell its 49% stake in Norte Litoral and its 48% stake in Via do Infante (Algarve), to DIF Capital Partners, for EUR172mn. As part of the agreement Cintra will hold a management contract for both assets. Ferrovial has already received EUR100mn from the sale process, EUR72mn pending.
  • Broadspectrum sale: Following the agreement reached by Ferrovial with Ventia Services Group for the disposal of Broadspectrum on December 2019, on 30 June 2020, Ferrovial completed the sale. The transaction price (shares and shareholder loans) amounted to AUD465mn (EUR288mn including transaction costs). This figure did not include Ferrovial’s 50% stake in TW Power Services acquired by the JV partner Worley for AUD20mn (c. EUR12mn) in July.
  • Budimex 5% stake sale: On June 2020, Ferrovial sold a stake in Budimex (5%), with no impact on P&L. Ferrovial holds a controlling stake (50.1%). The impact on cash flow was EUR58mn at 2020.


Toll roads: traffic performance was impacted by COVID-19 pandemic across all assets, very correlated to mobility restriction measures in each region. In addition, the impact was higher for light vehicles, with heavy vehicles showing more resilience. Revenues decreased by -19.2% LfL and EBITDA by -22.9% LfL. EBITDA stood at EUR251mn, including the change in Autema method of accounting following the Supreme Court dismissal. 407ETR traffic was highly impacted by measures adopted by the Ontario Province to curb the spread of COVID-19, decreasing by -45.3% in 2020. Managed Lanes traffic showed steady improvement since the reopening of the economy in May, although traffic was impacted by the upswings in COVID-19 cases in June and 4Q.

Airports: Passenger numbers at Heathrow declined by -72.7% in 2020. Revenues fell by -61.7% and adjusted EBITDA by -85.9% at Heathrow SP. AGS traffic decreased by -75.9%, with revenues decreasing by -67.4% and EBITDA by -126.1%.

Construction: High level of production sustained with strong improvement in margins. Revenues were up +11.4% LfL, 87% international. EBIT reached EUR134mn, vs. -EUR365mn in 2019 (which was impacted by the provision recorded in 1Q 2019 for three contracts in US). EBIT margin reached 2.3% in 2020, including COVID-19 impact (–EUR49mn). The order book stood at EUR10,129mn (-5.6% LfL), not including pre-awarded contracts of around EUR370mn.

Services (disc. operations): Net income from discontinued operations stood at -EUR3mn, including a negative result recorded from the Broadspectrum sale (–EUR64mn), mainly due to the reclassification to 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).


EUR1,991mn net cash ex-infrastructure projects (including discontinued operations) vs EUR1,631mn on December 2019. Net debt of infrastructure projects reached EUR4,532mn (EUR4,588mn in December 2019). Net consolidated debt reached EUR2,541mn (EUR2,957mn in December 2019).


EUR (million) DEC-20 DEC-19
REVENUES  6,341 6,054
Construction Provision* -345
EBITDA 409 121
Period depreciation -198 -180
Disposals & impairments 15 460
EBIT** 226 401
Equity-accounted affiliates -378 296
EBT -384 504
Corporate income tax 28 -47
Minorities -51 9

(*) Related to the provision registered in 1Q 2019 corresponding to three contracts in the US.
(**) EBIT after impairments and disposals of fixed assets.


EUR (million) DEC-20 DEC-19 VAR. LfL
Toll Roads 251 436 -42.3% -22.9%
Airports -18 -16 -10.5% 12.1%
Construction 227 -286 179.4% 181.2%
Others -51 -12 n.a. n.a.
TOTAL EBITDA 409 121 238.0% n.s.


EUR (million) DEC-20 DEC-19 LfL
Toll Roads 436 644 -32.4%
Airports 50 574 -91.2%
Construction ex-provision 227 65 n.s.
Others -33 -40 16.7%
TOTAL EBITDA 680 1,244 -45.3%

Like-for-like figures.


EUR (million) DEC-20 DEC-19
NCP ex-infrastructures projects 1,991 1,631
NCP infrastructures projects -4,532 -4,588
       Toll roads -4,216 -4,220
       Others -316 -368
Total Net Cash/(Debt) Position -2,541 -2,957

NCP: Net cash position. Includes discontinued operations