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1. Management Report 2022
- 1.1 In 2 minutes
- 1.2 Strategy and Value Creation
- 1.3 Ferrovial in 2022
- 1.4 Risks
- 1.5 Corporate Governance
- 1.6 Expected Business Performance in 2023
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Appendix
- Alternative Performance Measures
- Sustainability management
- Reporting principles
- Taxonomy
- Task Force on Climate Related Disclosures
- Scoreboard
- Contents of Non-Financial Information Statements
- SASB indicators
- GRI standards Indicators
- Appendix to GRI Standards indicators
- Glosary of terms
- Verification Report
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2. Consolidated Financial Statements
- Consolidated Financial Statements
- Audit Report
FINANCIAL REVIEW
CONSOLIDATED CASH FLOW
| DEC-22 | EXINFRASTRUCTURE PROJECTS CASH FLOW | INFRASTRUCTURE PROJECTS CASH FLOW | ADJUSTMENTS | TOTAL CASH FLOW |
|---|---|---|---|---|
| EBITDA | 228 | 655 | 0 | 883 |
| IFRS16 impact | -72 | 0 | 0 | -72 |
| EBITDA including IFRS16 | 156 | 655 | 0 | 811 |
| Dividends received | 475 | 0 | -191 | 284 |
| Provisions variation | -68 | 0 | 0 | -68 |
| Working capital variation (account receivables, account payables and others) | 20 | -35 | 0 | -15 |
| Operating flow (before taxes) | 584 | 620 | -191 | 1,012 |
| Tax payment | -91 | 9 | 0 | -82 |
| Operating Cash Flow | 493 | 629 | -191 | 930 |
| Investments | -856 | -784 | 414 | -1,226 |
| Divestments | 429 | 0 | 0 | 429 |
| Investment cash flow | -427 | -784 | 414 | -797 |
| Activity cash flow | 66 | -155 | 223 | 133 |
| Interest flow | 3 | -285 | 0 | -282 |
| Capital flow from Minorities | 56 | 708 | -414 | 350 |
| Ferrovial shareholder remuneration | -578 | 0 | 0 | -578 |
| Scrip dividend | -132 | 0 | 0 | -132 |
| Treasury share repurchase | -446 | 0 | 0 | -446 |
| Other shareholder remuneration for subsidiary minorities | -67 | -285 | 191 | -161 |
| Other movements in shareholder’s funds | 9 | -77 | 0 | -69 |
| Forex impact | -113 | -342 | 0 | -456 |
| Changes in the consolidated perimeter | -106 | -91 | 0 | -197 |
| Other debt movements (non cash) | -13 | -58 | 0 | -71 |
| Financing cash flow | -809 | -431 | -223 | -1,463 |
| Net debt variation | -743 | -586 | 0 | -1,329 |
| Net debt initial position | 2,182 | -6,633 | 0 | -4,451 |
| Net debt final position | 1,439 | -7,219 | 0 | -5,781 |
| DEC-21 | EXINFRASTRUCTURE PROJECTS CASH FLOW | INFRASTRUCTURE PROJECTS CASH FLOW | ADJUSTMENTS | TOTAL CASH FLOW |
|---|---|---|---|---|
| EBITDA | 442 | 499 | 0 | 942 |
| IFRS16 impact | -131 | 0 | 0 | -131 |
| EBITDA including IFRS16 | 311 | 499 | 0 | 811 |
| Dividends received | 550 | -2 | -276 | 272 |
| Provisions variation | 85 | 0 | 0 | 85 |
| Working capital variation (account receivables, account payables and others) | -339 | 5 | 0 | -334 |
| Operating flow (before taxes) | 607 | 503 | -276 | 834 |
| Tax payment | -121 | -34 | 0 | -155 |
| Operating Cash Flow | 486 | 469 | -276 | 679 |
| Investments | -1,112 | -239 | 65 | -1,285 |
| Divestments | 1,621 | 0 | 0 | 1,621 |
| Investment cash flow | 509 | -239 | 65 | 336 |
| Activity cash flow | 995 | 230 | -210 | 1,015 |
| Interest flow | -39 | -253 | 0 | -292 |
| Capital flow from Minorities | 12 | 111 | -65 | 57 |
| Ferrovial shareholder remuneration | -463 | 0 | 0 | -463 |
| Scrip dividend | -31 | 0 | 0 | -31 |
| Treasury share repurchase | -432 | 0 | 0 | -432 |
| Other shareholder remuneration for subsidiary minorities | -88 | -458 | 276 | -270 |
| Other movements in shareholder’s funds | -5 | 5 | 0 | 0 |
| Forex impact | 49 | -252 | 0 | -202 |
| Changes in the consolidated perimeter | -256 | -1,482 | 0 | -1,738 |
| Other debt movements (non cash) | -13 | -4 | 0 | -17 |
| Financing cash flow | -804 | -2,332 | 210 | -2,926 |
| Net debt variation | 191 | -2,102 | 0 | -1,911 |
| Net debt initial position | 1,991 | -4,532 | 0 | -2,541 |
| Net debt final position | 2,182 | -6,633 | 0 | -4,451 |
EX-INFRASTRUCTURE PROJECT CASH FLOW (INCLUDING DISCONTINUED OPERATIONS)
*Before Corporate Income Tax. Operating cash flow in Toll Roads and Airports refers to dividends.
Operations cash flow
At December 31st, 2022, cash flow from ex-infrastructure project operations totaled EUR584mn (before tax), slightly below EUR607mn in 2021, impacted by lower dividends from Toll Roads and lower contribution from Services on the back of the reduction of the business following the divestment process, partially offset by higher contribution from Construction division and Airports dividends vs 2021.
* Others include the operating cash flow from Corporate Business, Airports & Toll Roads headquarters, along with the Energy Infrastructure and Mobility business.
Breakdown of cash flow from Construction and Services:
| Construction | DEC-22 | DEC-21 |
|---|---|---|
| EBITDA | 176 | 245 |
| EBITDA from projects | 6 | 11 |
| EBITDA Ex projects | 170 | 234 |
| IFRS16 impact | -64 | -63 |
| EBITDA including IFRS16 | 106 | 171 |
| Dividends received | 12 | 3 |
| Provisions variation | -53 | 67 |
| Working capital variation (account receivables, account payables and others) |
79 | -197 |
| Changes in factoring | 0 | 0 |
| Land purchases | 0 | 0 |
| Working capital | 79 | -197 |
| Operating Cash Flow before Taxes | 144 | 44 |
Dividends received from projects and capital reimbursements reached EUR475mn in 2022 (EUR550mn in 2021).
Energy Infrastructure and Mobility reached EUR60mn of dividends, including the extraordinary dividend from Transchile (EUR51mn) upon the closing of its refinancing.
Dividends from Toll Roads amounted to EUR388mn in 2022 (EUR469mn in 2021).
| Dividends and Capital reimbursements | DEC-22 | DEC-21 |
|---|---|---|
| 407 ETR | 237 | 164 |
| LBJ | 31 | 167 |
| NTE | 92 | 53 |
| IRB | 2 | 0 |
| Irish toll roads | 3 | 1 |
| Portuguese toll roads | 2 | 4 |
| Australian toll roads | 4 | 1 |
| Spanish toll roads | 12 | 75 |
| Others | 5 | 3 |
| Total | 388 | 469 |
| DEC-21 | INVESTMENT | DIVESTMENT | INVESTMENT CF |
|---|---|---|---|
| Toll Roads | -864 | 47 | -817 |
| Airports | -54 | 0 | -54 |
| Construction | -55 | 529 | 474 |
| Services | -67 | 1,040 | 973 |
| Others | -72 | 5 | -68 |
| Total | -1,112 | 1,621 | 509 |
The net investment cash flow in 2022 (-EUR427mn) includes:
- Investments reached -EUR856mn in 2022 (-EUR1,112mn in 2021), most noteworthy of which were the EUR322mn invested in the I-66 Managed Lanes project and the EUR46 invested in NTE 3C, along with the EUR104mn to acquire an additional 7.135% stake in I-77, together with the EUR186mn from Airports (EUR119mn from Dalaman acquisition and EUR59mn of equity invested in NTO).
- Divestments reached EUR429mn in 2022 (EUR1,621mn in 2021) mostly related to the divestment of the Services division including the divestment of the Infrastructure Services business in Spain (EUR175mn), Amey (EUR132mn) and the divestment of Ausol (EUR111mn) and Algarve (EUR23mn).
Financing cash flow
Financing cash flow includes:
- Shareholder remuneration cash flow: -EUR578mn in 2022, (-EUR463mn in 2021), including -EUR132mn from the scrip dividend and -EUR446mn of shares repurchase including the share buyback program (EUR388mn) along with the discretionary shares purchased (EUR57mn) following the Board of Directors approval in 2021 which took place from December 2021 to January 2022.
- Net interest payments reached EUR3mn in 2022.
- FX impact stood at -EUR113mn, primarily from the USD.
- Changes in the consolidated perimeter (-EUR106mn) included the net cash position held by Infrastructure Services activity and Amey upon sale.
- Other non-cash flow related movements (EUR-13mn) which included 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.
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.
Investment cash flow
The following table shows a breakdown of the investment cash flows for infrastructure projects, mainly payments made in respect of capital expenditure investments over the year.
| (EUR million) | DEC-22 | DEC-21 |
|---|---|---|
| LBJ | -2 | -2 |
| NTE | -8 | -4 |
| NTE 35W | -247 | -193 |
| I-77 | -17 | 0 |
| I-66 | -436 | -53 |
| Portuguese toll roads | -1 | -1 |
| Spanish toll roads | -4 | -1 |
| Others | 0 | 1 |
| Total Toll Roads | -715 | -253 |
| Others | -94 | -32 |
| Total projects | -809 | -285 |
| Equity Subsidy | 25 | 46 |
| Total investment cash flow (projects) | -784 | -239 |
*I-66 was not globally consolidated as of June 2021
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 concessionholding 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.
The financing cash flow also includes the impact that changes in the exchange rate have had on the debt held in foreign currency, which in 2022 was a negative impact of -EUR342mn, primarily as the result of the depreciation of the euro against USD, which has had an impact on the net debt figure for the US toll roads.
