FINANCIAL REVIEW

Consolidated P&L

(EUR million)	DEC-22	DEC-21
REVENUES	7,551	6,910
EBITDA	728	610
Period depreciation	-299	-270
EBIT (ex disposals & impairments)	429	340
Disposals & impairments	-6	1,139
EBIT	423	1,479
Financial Result	-320	-335
Financial Result from infrastructure projects	-365	-307
Financial Result from ex-infrastructure projects	45	-28
Equity-accounted affiliates	165	-178
EBT	268	966
Corporate income tax	-30	9
NET PROFIT FROM CONTINUING OPERATIONS	238	975
NET PROFIT FROM DISCONTINUED OPERATIONS	64	361
CONSOLIDATED NET INCOME	302	1,336
Minorities	-116	-138
NET INCOME ATTRIBUTED	186	1,198

Revenues at EUR7,551mn (+4.2% LfL) on the back of higher Construction revenues (+2.2% LfL) and Toll Roads (+22.4% LfL).

EBITDA reached EUR728mn (+7.7% LfL) supported by a higher contribution from Toll Roads (21.6% LfL), particularly US Toll Roads with an EBITDA of EUR498mn.

Depreciation: +10.7% in 2022 (+6.8% LfL) to -EUR299mn.

Impairments and fixed asset disposals: -EUR6mn in 2022, compared to EUR1,139mn in 2021 that showed the capital gains from the additional stake acquisition in I-66 (EUR1,117mn) along with the capital gains from the sale of URBICSA and Nalanda.

Financial result: lower financial expenses on the back of the financial income from ex-infra projects in 2022 vs 2021.

Infrastructure projects: -EUR365mn expenses (-EUR307mn in 2021) mainly driven by the I-66 opening as financial expense is no longer capitalized due to the entry into operation in 2022, along with the negative performance of Autema’s ILS derivative given the increase in inflation (mark to market change ILS).
Ex-infrastructure projects: EUR45mn of financial income in 2022 (-EUR28mn in 2021), mainly due to the higher remuneration of the cash position in Construction along with the positive impact from the bond pre-issuance hedging, expected to be issued by Ferrovial in 2022. Given that the bond issuance had not taken place, the impact was reclassified in P&L (EUR68mn).

Equity-accounted result at net profit level, reached EUR165mn after tax (-EUR178mn in 2021). The change vs 2021 is mainly related to airports as the considerable losses posted in 2019 and 2020 in airports reduced the investments in Heathrow & AGS to zero, as prior-years losses exceeded the amount of investment, there being no commitments to inject additional funds (IAS 28). Therefore, there is no equity accounted contribution in 2022.

(EUR million)	DEC-22	DEC-21	VAR.
Toll Roads	157	81	95.1%
407 ETR	124	52	137.1%
IRB	22	0	n.s.
Others	11	28	–60.0%
Airports	7	-254	102.8%
HAH	0	-238	100.0%
AGS	0	-20	100.0%
Others	7	4	61.2%
Construction	1	0	222.0%
Others	-1	-5	83.3%
Total	165	-178	192.5%

REVENUES

(EUR million)	DEC-22	DEC-21	VAR.	LfL.
Toll Roads	780	588	32.6%	22.4%
Airports	54	2	n.s.	n.s.
Construction	6,463	6,077	6.3%	2.2%
Energy Infrastructure & Mobility	296	252	17.6%	18.0%
Others	-42	-9	n.s.	n.s.
Total Revenues	7,551	6,910	9.3%	4.2%

EBITDA

(EUR million)	DEC-22	DEC-21	VAR.	LfL.
Toll Roads	550	415	32.5 %	21.6%
Airports	-2	-26	92.3 %	-41.0 %
Construction	176	245	-28.2 %	-27.8 %
Energy Infrastructure & Mobility	13	-13	200.0 %	224.6%
Others	-9	-11	18.2%	50.8%
Total EBITDA	728	610	19.3 %	7.7 %

EBIT*

(EUR million)	DEC-22	DEC-21	VAR.	LfL.
Toll Roads	390	275	42.3%	25.0%
Airports	-9	-26	65.4%	-40.9%
Construction	63	132	-52.5 %	-50.5 %
Energy Infrastructure & Mobility	1	-24	104.2 %	104.7%
Others	-16	-17	5.9%	25.4%
Total EBIT	429	340	26.2 %	8.3 %

*EBIT before impairments and disposals of fixed assets

Tax: the corporate tax expense for 2022 was -EUR30mn (vs EUR9mn in 2021). 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 (EUR165mn).
Losses and tax credits that, following accounting prudence criteria, do not imply the recognition of the full tax credits for future years (EUR158mn).

Excluding the aforementioned adjustments in the tax result, adjusting for the impact from previous years spending (-EUR5mn), and other adjustments, the resulting effective corporate income tax rate is 12%.

Net income from continuing operations stood at EUR238mn in 2022 (EUR975mn in 2021).

Net income from discontinued operations stood at EUR64mn mostly related to the capital gain from Amey’s divestment, compared to EUR361mn in 2021, including the discontinued operations from Services activities (EUR246mn) and Budimex’s Real Estate business (EUR115mn).