Ferrovial’s Rafael del Pino to the Spanish government: “Cut tax burden”

Rafael del Pino, Chairman of Ferrovial, advocated measures to drive recovery and job creation. “Only with economic growth and strong companies can Spain create jobs again,” he said, during the Shareholders’ Meeting in Madrid. The Meeting approved all the items on the agenda, including the financial statements and a dividend payment charged to reserves amounting to 0.25 per share, supplementing the 1 euro per share paid in December.

“We need more public investment, better financing conditions and a lower tax burden,” said Mr del Pino. “We view 2013 from a position of prudence and moderate optimism, but the prospects are undeniably better than they were twelve months ago.”

Overall, Mr del Pino described 2012 as “very positive for Ferrovial and its shareholders”. The year was shaped by “strong cash flow, good operating results, major new contracts, and successful asset rotation,” he added. “The good performance of our businesses, especially outside Spain, was evidenced by a 3.2% increase in revenues and 13.4% growth in EBITDA.”

Ferrovial’s share appreciated by 20% in 2012, and the total return including dividends was 36%. “Our sound financial position enabled us to provide excellent shareholder remuneration,” concluded the Chairman.

Mr del Pino underlined the company’s financial strength. As a result of skilful management during the year, operating cash flow rose by 78% year-on-year, exceeding market expectations, supported by positive business performance, divestments, the increase in dividends from Toll Roads, and the first dividend from Heathrow Airport Holdings (HAH). This enabled the parent company to end 2012 with a net cash position of 1.489 billion euro, compared with 907 million euro in 2011, as well as over 3.750 billion euro in liquidity, “which gives us the flexibility to undertake investment projects.”

“In short, in 2012 Ferrovial gained in strength and capacity to continue to grow, invest, and seize opportunities that arise,” he added.

As regards the company’s 60th anniversary, on 18 December last, Rafael del Pino underlined the four principles that have guided Ferrovial since inception and which remain in force today: “a commitment to talent, innovation, efficiency, and international diversification”.

The company’s ongoing focus on innovation, social responsibility, and the environment were visible in 2012, when Ferrovial was once again included in the Dow Jones Sustainability Index (DJSI), the FTSE4Good, and Fortune magazine’s list of Most Admired Companies.

* Press release.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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