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Letter from the chairman
- In Two minutes
- Value Creation
- Ferrovial in 2023
- Corporate Governance
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Appendix
- Alternative Performance Measures
- Sustainability management
- Reporting principles
- EU Taxonomy
- Task Force on Climate-Related Financial Disclosures (TCFD)
- ESG scoreboard
- Non-financial information and diversity reference table (Dutch Law)
- Contents of non-financial information statement (Spanish Law)
- SASB indicators
- GRI standards Indicators
- Appendix to GRI indicators
- Glosary of terms
- Board of Directors
- Assurance Report of the independent auditor
- Other information
- INDIVIDUAL FINANCIAL STATEMENTS
- AUDIT REPORT
BUSINESS LINES
Toll Roads
407 ETR (43.23%, equity-accounted)
The annual financial information presented herein for the year ended December 31, 2023 is based on, and is consistent with, the audited consolidated financial statements of 407 ETR for the year ended December 31, 2023, published on February 22, 2024.
TRAFFIC
| 2023 | 2022 | VAR. | |
|---|---|---|---|
| Avg trip length (km) | 22.87 | 22.55 | 1.4% |
| Traffic/trips (million) | 110.84 | 98.11 | 13.0% |
| VKTs (million) | 2,535 | 2,213 | 14.6% |
| Avg Revenue per trip (CAD) | 13.23 | 13.32 | -0.7% |
VKT (Vehicle kilometers travelled)
In 2023, VKTs increased by +14.6% vs 2022, primarily due to an increase in mobility and more people commuting to work in 2023 vs 2022, when all COVID-19 related restrictions were lifted (Q1 2022). Traffic growth was also supported by an increase in rehabilitation construction activities on Highway 401.
When compared to 2019, traffic volumes in 2023 were still lower (-7.5%), but showed a positive trend thanks to increased mobility in the area.
Quarterly traffic performance vs 2022 & 2019
Revenues were up by +12.7% in 2023, reaching CAD 1,495 million.
- Toll revenues (92.2% of total): +14.0% to CAD 1,379 million, on the back of higher number of trips and VKTs compared to 2022.
- Fee revenues (6.9% of total): -7.9% to CAD 103 million, due to reversal of provisions in 2022 and due to lower interest on delinquent accounts.
- Contract revenues (0.9% of total) amounted to CAD 14 million in 2023, related to the reconfiguration of the road-side tolling technology in connection with the removal of tolls for Highways 412 and 418. The contract was completed on June 1st, 2023.
OPEX +12.3%, higher system operations expenses resulting from higher consulting and licensing costs, mainly related to the Company’s enterprise resource planning and customer relationship management project. In addition to higher customer operations costs resulting from a higher provision for lifetime expected credit loss, due to higher revenues.
EBITDA +12.7%, as a result of higher traffic volumes and revenues. EBITDA margin increased by +0.1% (85.9% vs 85.8% in 2022).
Dividends: CAD 950 million dividends were paid to shareholders in 2023, compared to CAD 750 million in 2022. The dividends distributed to Ferrovial were EUR 281 million in 2023 (EUR 237 million in 2022).
Net debt at of December: CAD 9,464 million (average cost of 4.20%). 53% of debt maturing in more than 15 years or more. Upcoming bond maturity dates are CAD 273 million in 2024, CAD 374 million in 2025 and CAD 381 million in 2026.
407 ETR bond maturity profile (CAD million)
407 ETR credit rating
- S&P: “A” (Senior Debt), “A-” (Junior Debt) & “BBB” (Subordinated Debt), with stable outlook, reaffirmed on July 31st, 2023.
- DBRS: “A” (Senior Debt), “A low” (Junior Debt) and “BBB” (Subordinated Debt), all trends with stable outlook, reaffirmed on June 28th, 2023.
407 ETR Toll Rates
In December 2023, 407 ETR signalled the end of a four-year rate freeze since February 2020 by announcing a new rate schedule that comes into effect on Feb 1st, 2024. For more information on the new toll rates, please visit the 407 ETR website at 407etr.com.
Schedule 22
The COVID-19 pandemic is considered a Force Majeure event under the provisions of the Concession and Ground Lease Agreement (CGLA), and therefore the 407ETR is not subject to Schedule 22 payments until the end of the Force Majeure event.
The 407 ETR and the Province agreed that the Force Majeure event terminates when traffic in 407 ETR and adjacent roads reach pre pandemic levels (measured as the average of 2017 to 2019), or when there is an increase in toll rates or user charges.
The toll rate increase by 407 ETR effective February 1, 2024, terminates the Force Majeure event, such that any Schedule 22 Payment applies for the year 2025, and is payable to the Providence in 2026. No Schedule 22 Payment applies for the year 2024.
*Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Alternative Performance Measures of the Integrated Annual Report.
TEXAS MANAGED LANES (USA)
NTE 1-2 (63.0%, globally consolidated)
In 2023, traffic increased by +9.0% vs 2022. Traffic has been improving as a result of higher mobility in the area.
*Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Alternative Performance Measures of the Integrated Annual Report (page 262)
The average revenue per transaction reached USD 7.3 in 2023 vs. USD 6.7 in 2022 (+9.0%) positively impacted by higher toll rates.
NTE ADJUSTED EBITDA EVOLUTION (USD million)
Dividends: NTE distributed two dividends in 2023 (June and December), for a total of USD 187 million at 100% (EUR 109 million FER’s share). In 2022, NTE distributed USD 155 million at 100% (EUR 92 million FER’s share).
NTE net debt reached USD -1,263 million in December 2023 (USD -1,223 million in December 2022) with an average cost of 4.46% (including NTE Ultimate Configuration financing).
NTE Capacity Improvements financial close: NTE consortium, led by Cintra, has issued USD 414.2 million using private activity bonds (PABs). The funds are mainly earmarked to finance the construction of certain capacity improvements required by the Comprehensive Development Agreement with the Texas Department of Transportation (TxDOT). Due to the success of the project, these capacity improvements will be implemented earlier than initially anticipated. The works commenced at the end of 2023, with construction expected to start in 2024 and expected completion in early 2027. Ferrovial Construction and Webber will serve as the design-build contractor.
LBJ (54.6%, globally consolidated)
In 2023, traffic increased by +9.2% vs. 2022, still down on 2019 levels mainly due to constructions works in the area. Traffic has been improving as a result of higher mobility but has beem negatively impacted by works in the area (I-635).
*Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Alternative Performance Measures of the Integrated Annual Report
The average revenue per transaction reached USD 4.4 in 2023 vs. USD 4.0 in 2022 (+10.7%) positively impacted by higher toll rates.
LBJ ADJUSTED EBITDA EVOLUTION (USD million)
Dividends: LBJ distributed two dividends in 2023 (June and December), for a total of USD 74 million (EUR 37 million FER’s share). In 2022, LBJ distributed USD 60 million (EUR 31 million FER’s share).
LBJ net debt was USD -2,018 million in December 2023 (USD -2,020 million in December 2022) with an average cost of 4.03%.
NTE 35W (53.7%, globally consolidated)
In 2023, NTE 35W traffic increased by +20.1% vs 2022, showing a positive performance coming from the opening to traffic of NTE 3C on June 20. The traffic at NTE 35W excluding Segment 3C increased by +6.9% in 2023.
*Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Alternative Performance Measures of the Integrated Annual Report.
Average revenue per transaction stood at USD 5.6 in 2023, vs. USD 4.8 in 2022 (+15.4%), positively impacted by higher toll rates.
NTE 35W EBITDA EVOLUTION (USD million)
Dividends: In 2023, NTE35W distributed dividends for first time with an extraordinary dividend in June amounting to USD 435 million at 100% (EUR 216 million FER’s share) and a regular dividend in December of USD 70 million (EUR 35 million FER’s share), totaling USD 505 million (EUR 251 million FER’s share).
NTE 35W net debt reached USD 1,624 million in December 2023 (USD 1,233 million in December 2022) with an average cost of 4.67%, including NTE 3C.
I-77 (72.2%, globally consolidated)
In 2023, traffic increased by +18.4% vs 2022, showing a strong performance on the back of an increase in mobility.
*Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Alternative Performance Measures of the Integrated Annual Report.
The average revenue per transaction was USD 2.2 in 2023 vs. USD 1.7 in 2022 +28.1%), impacted by higher toll rates.
I-77 net debt was USD -202 million in December 2023 (USD -257 million in December 2022) with an average cost of 3.65%.
Credit rating
| PAB | TIFIA | |
|---|---|---|
| FITCH | BBB | BBB |
| DBRS | BBB | BBB |
I-66 (55.7%, globally consolidated)
In 2023, traffic reached 29 million transactions, with traffic ramping up.
| (USD million) | 2023 |
|---|---|
| Transactions (million) | 29 |
| Avg. revenue per transaction (USD) | 5.5 |
| Revenues (USD million) | 167 |
| Adjusted EBITDA* | 129 |
| Adjusted EBITDA margin* | 76.9% |
| Adjusted EBIT* | 70 |
| Adjusted EBIT margin* | 41.9% |
*Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Alternative Performance Measures of the Integrated Annual Report.
The average revenue per transaction was USD 5.5 in 2023.
I-66 net debt reached USD -1,622 million in December 2023 (USD -1,644 million in December 2022) with an average cost of 3.57%.
Credit rating
| PAB | TIFIA | |
|---|---|---|
| Moody’s | Baa3 | Baa3 |
| FITCH | BBB | BBB |
IRB (24.86%, equity-accounted)
Based on Indian legislation, the latest available information corresponds to the closing of IRB’s third quarter of Fiscal Year 2024 (April 2023 to March 2024), that goes from April 2023 to December 2023. For comparison purposes, Ferrovial’s consolidated financial statements include the company’s contribution for the twelve months of 2023 (January to December).
| (EUR million) | 2023 | 2022 | VAR. | LfL growth* |
|---|---|---|---|---|
| Revenues | 828 | 802 | 3.2% | 11.5% |
| Adjusted EBITDA* | 406 | 427 | -4.9% | 2.7% |
| Adjusted EBITDA margin* | 49.1% | 53.2% | ||
| Adjusted EBIT* | 301 | 330 | -9.0% | -1.7% |
| Adjusted EBIT margin* | 36.3% | 41.2% |
*Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Alternative Performance Measures of the Integrated Annual Report.
In 2023, IRB achieved significant milestones by being awarded with four projects:
- One BOT project (build-operate-transfer) in the State of Gujarat achieving the financial close in September 2023 and receiving the appointed date (green light to start construction) in December 2023.
- Three TOT projects (toll-operate-transfer), highlighting the project awarded in the State of Telangana, which is the second largest single asset TOT project after Mumbai-Pune.
OTHER TOLL ROADS
Azores (Portugal): In December 2023, Ferrovial completed the sale of its 89.2% stake to infrastructure funds Horizon and RiverRock. The deal amounted to EUR 43 million. Ferrovial will continue to provide technical services to the concession company for two years, which may be extended by mutual agreement.
ASSETS UNDER DEVELOPMENT
- Ruta del Cacao (Colombia): 152 km, out of which 81 km are new toll road, including the construction of 16 bridges, 2 viaducts & 2 tunnels with a combined length of 6km. This is a 25-year concession. Design and construction works 98.2% completed as of December 31st , 2023.
- Silvertown tunnel (London, UK) : an availability payment project with a concession term of 25 years. A 1.4 km twin bore road tunnel which will be built under the River Thames. The works are expected to be completed in 2025. Design and construction works are 85.6% completed as of December 31st , 2023.
TENDERS PENDING
Ferrovial keeps focused on the USA as main market, and the Group continues to pay close attention to private initiatives:
- Prequalified in SR400 Managed Lanes in Atlanta (Georgia).
- Actively following several projects in other states (Virginia, Tennessee and North Carolina). These projects have different degrees of development and are expected to come to market in the coming months. Some of them include Managed Lanes schemes.
Apart from the USA, Cintra is active in other geographies where selective investments could be pursued. An example is the unsolicited proposal of the Anillo Vial Periferico Project (Peru).
