FINANCIAL REVIEW

Consolidated P&L

(EUR million)	DEC-21	DEC-20
REVENUES	6,778	6,532
EBITDA	596	406
Period depreciation	-259	-233
EBIT (ex disposals & impairments)	337	173
Disposals & impairments	1,139	16
EBIT	1,476	189
Financial Result	-334	-243
Financial Result from infrastructure projects	-307	-207
Financial Result from ex-infrastructure projects	-27	-36
Equity-accounted affiliates	-178	-373
EBT	964	-427
Corporate income tax	10	34
NET PROFIT FROM CONTINUING OPERATIONS	974	-393
NET PROFIT FROM DISCONTINUED OPERATIONS	361	20
CONSOLIDATED NET INCOME	1,335	-373
Minorities	-138	-51
NET INCOME ATTRIBUTED	1,197	-424

Revenues at EUR6,778mn (+5.4% LfL) on the back of higher Construction revenues (+3.1% LfL) and Toll Roads (+36.8% LfL).

EBITDA: EUR596mn (EUR406mn in 2020 which was impacted by
-EUR22mn provision related to the corporate restructuring plan).

Depreciation: +11.5% in 2021 (+15.9% LfL) to -EUR259mn.

Impairments and fixed asset disposals: EUR1,139mn in 2021 (EUR16mn in 2020) showing 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: higher financial expenses in 2021 vs 2020.

Infrastructure projects: -EUR307mn expenses (-EUR207mn in 2020) mainly on the back of the negative performance of Autema’s ILS derivative given the increase in inflation (mark to market change ILS), partially offset by lower financial cost from LBJ following its refinancing (Sept’20). Autema has a negative carrying value (-EUR84mn).
Ex-infrastructure projects: -EUR27mn of financial expenses 2021 (-EUR36mn in 2020), mainly due to the positive impact of equity swaps linked to share payment plans, partially offset by lower cash remuneration from lower interest rates. The hedges on the equity swaps linked to payment plans led to +EUR14mn in 2021 (-EUR10mn in 2020), due to the positive performance of the share price vs. its negative performance in 2020:

DATE	CLOSING PRICE (€)
31 Dec. 2019	26.97
31 Dec. 2020	22.6
31 Dec. 2021	27.56

Equity-accounted result at net profit level, equity-accounted companies contributed -EUR178mn after tax (-EUR373mn in 2020)

(EUR million)	DEC-21	DEC-20	VAR.
Toll Roads	81	67	19.9 %
407 ETR	52	33	58.2 %
Others	28	34	-16.9 %
Airports	-254	-439	42.1 %
HAH	-238	-396	39.9%
AGS	-20	-51	60.3%
Others	4	8	-48.6%
Construction	0	1	-70.4 %
Others	-5	-2	-164.3 %
Total	-178	-373	52.3 %

REVENUES

(EUR million)	DEC-21	DEC-20	VAR.	LfL.
Toll Roads	588	439	34.1 %	36.8 %
Airports	2	1	74.9 %	74.9 %
Construction	6,077	5,984	1.6 %	3.1 %
Others	110	108	1.5%	5.8%
Total Revenues	6,778	6,532	3.8%	5.4%

EBITDA

(EUR million)	DEC-21	DEC-20	VAR.	LfL.
Toll Roads	415	280	48.6 %	47.9 %
Airports	-26	-22	-16.3 %	-16.4 %
Construction	245	214	14.2 %	16.4 %
Others	-38	-66	42.3 %	8.5 %
Total EBITDA	596	406	46.9 %	39.5 %

EBIT*

(EUR million)	DEC-21	DEC-20	VAR.	LfL.
Toll Roads	275	171	60.3 %	57.8 %
Airports	-26	-23	-15.3 %	-15.3 %
Construction	132	101	31.3 %	32.1 %
Others	-45	-76	41.6 %	(74.5) %
Total EBIT	337	173	94.2 %	65.7 %

*EBIT before impairments and disposals of fixed assets

Tax: the corporate income tax for 2021 was EUR10mn (vs EUR34mn in 2020). 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 (-EUR178mn).
Fair value of I-66 additional stake acquisition (EUR1,117mn).
Impact of 95% exemption of capital gains in Spain (EUR39mn).
Losses and tax credits that, following accounting prudence criteria, do not imply the recognition of the full tax credits for future years (-EUR28mn).

Excluding the aforementioned adjustments in the tax result, and adjusting for the impact from previous years spending and other adjustments (-EUR17mn), the resulting effective corporate income tax rate is 31%.

Net income from continuing operations stood at EUR974mn in 2021 (-EUR393mn in 2020). This result includes a series of impacts, notable among which were:

Fair value of I-66 additional stake acquisition: EUR1,117mn
Fair value adjustments for derivatives: -EUR33mn (-EUR125mn in 2020), mainly impacted by the negative evolution of HAH’s derivatives.
Negative impact from Autema ILS derivative due to the increase in inflation rate (-EUR64mn).
2020 was impacted by HAH & AGS extraordinary impacts, due to change in UK Income Tax Rate, fixed assets write-off and restructuring plans given COVID-19 impact, and the one-off cost related to the restructuring plan carried out by Ferrovial.

Net income from discontinued operations stood at EUR361mn including the discontinued operations from Services activities (EUR246mn) and Budimex’s Real Estate business (EUR115mn).