BUSINESS AREAS



CONCESSIONS
*Canada
*Portugal
*Chile

Millions of euros
2000
1999
%
Revenues
257.0
179.2
43.4
Operating profit
103.6
63.4
63.4
Operating margin
40.3%
35.4%

Full-year consolidation of the ETR 407 toll road (8 months in 1999) and the contribution from the Málaga-Estepona toll road (not operational in the first half of 1999) plus a considerable increase in traffic on all roads were the main reasons for growth in concessions.

The break-down of the car park and toll road business is as follows:

Millions of euros
Revenues
Operating profit
Margin
Toll roads
192.0
90.0
46.9%
Car parks
65.0
13.6
20.9%
Total
257.0
103.6
40.3%

Toll roads represent 75% of the division’s revenues and 87% of operating profit.

The main contributions in the toll roads area were as follows:

Millions of euros
Revenues
Operating profit
Margin
ETR 407*
138.2
66.1
47.8%
Autema
22.8
16.8
73.5%
Málaga-Estepona**
22.2
13.6
61.3%

*The ETR 407 toll road was added to Ferrovial’s accounts in May 1999. Revenues increased by 24.6% in the comparable period May-December 2000.

** The Málaga-Estepona toll road was opened to traffic in July 1999. Revenues increased by 29.7% in the comparable period July-December 2000.

Average daily traffic (ADT) performed as follows:
2000
1999
%
Europistas (Bilbao-Behobia)*
29,279
27,932
4.8
Europistas (Burgos-Armiñón)*
17,339
15,550
11.5
Autema
13,163
10,877
21.0
Ausol
10,905
9,650
27.7**
ETR 407
57,105
52,007
9.8
*Europistas is equity-accounted.
**Traffic increase in comparable period July-December 2000 with
respect to the same period in the previous year.

• ETR 407 – TORONTO (CANADÁ)

Financing

The C$2,300 million bridge loan obtained in May 1999 to finance the acquisition of the ETR 407 toll road was refinanced in the first quarter of 2000, twenty-six months ahead of schedule, and the subordinated debt amounting to C$775 million which the shareholders had undertaken to pay within three years was refinanced in the second quarter of 2000.

The subordinated debt was refinanced with bank loans, meaning that the shareholders recovered the part of the subordinated debt that they had already paid and were relieved from paying the remainder; in the case of Ferrovial, this implies a reduction in capital expenditure or a reduction in risk amounting to €300 million (C$475 million) with respect to initial estimates.

The initial financing structure (May 1999) was as follows (in millions of Canadian dollars):
Total investment in project
4,000
Financing:
Equity (19%)
775
Subordinated debt (19%)
775
Junior debt (4%)
150
Senior debt (58%)
2,300

The risk assumed by the shareholders was C$775 million in equity and C$775 million in subordinated debt.The risk assumed by Ferrovial (which owns 61.29% of the consortium) was C$475 million in equity and C$475 million in subordinated debt.

The refinancing of the subordinated debt in May 2000 has eliminated this investment commitment, releasing the funds for use in other investments by the group.

The bonds issued to finance the Canadian toll road are detailed below:

(amounts in millions of Canadian dollars)
Issue
Amount
Term (years)
Maturity
Rate
July-1999
400
10
2009
6.05%
July-1999
400
20
2029
6.47%
July-1999
300
40
2039
6.75%
August-1999
162.5
17
2016
5.33%
162,5
22
2021
5.33%
162,5
27
2026
5.33%
162,5
32
2031
5.33%
October-1999
400
7
2006
6.55%
February-2000
325
39
2039
5.29%
March-2000
430
7
2007
6.90%
May-2000
710
7
2007
9.00%
June-2000
165
10
2010
7.00%


Toll reviews

The changes in the tolls on the ETR 407 road are detailed below:
Initial tolls
April 1999
Daytime peak
Daytime off-peak
Nighttime
$ 0.10 / Km
$ 0.07 / Km
$ 0.04 / Km

First toll increase
September 1999
Daytime peak
% increase
$ 0.08 / Km
14.20%

Second toll increase
Daytime peak
Daytime off-peak
Nighttime
May 2000
$ 0.105 / Km
$ 0.105 / Km
$ 0.05 / Km
% increase
5%
31%
25%

The latest toll review brought the daytime peak and off-peak tolls into line, so the road now charges a flat rate per kilometer except at night (11 p.m. to 6 a.m.).

Traffic figures

Traffic surveys performed last year revealed that traffic was relatively inelastic to price increases so it was decided to bring the daytime off-peak toll into line with the peak toll and take the risk of a temporary reduction in traffic in the short term.

However, traffic did not decline; in fact it increased by 10% after the toll review.
Average number of transits per day following the toll increase (May 2000)

1999
2000
%
May average
197,973
218,685
10.40
June average
209,001
233,275
11.60
@
Average traffic growth (2000)
1999
2000
%
January - December
197,415
217,871
10.4

Back-->

• SCUT DEL ALGARVE (PORTUGAL)

Local-currency financing for the project was completed by means of a 23-year 54,000 million escudos loan. Ferrovial’s equity investment involved a disbursement of €35.8 million.

Awarded to Ferrovial early in 2000, this project requires an investment of €228 million under a 30- year shadow-toll concession to build and operate the road.

Ferrovial owns 79% of the successful consortium; the other 21% is owned by a number of Portuguese companies.

The road, which runs along the coast in the main tourist area of southern Portugal, is 179 kilometers long (39 kilometers newly-built) and is due to come into service in 2003. Back-->

• COLLIPULLI – TEMUCO (CHILE)

Financing for this toll road has been successfully completed entirely in local currency (equivalent to €228 million) at 20 years. Back -->