Ferrovial | Annual Results 2018 - Ernesto López Mozo

That's right. I mean, basically we have made the decision to sell the services division and we have to report that business unit as discontinued operations. That means that the remainder of the group, airports or roads, construction, follows the usual pattern. We have here growth in revenues, EBITDA, and net income on a like-for-like basis. And then for the services division, we just have two lines. I mean, one line is the net income of discontinued operations and the other one is the fair value adjustment. And here we have an important hit this year.

Well, it relates to the flexibility we want to keep with that sale. If we want to be free to sell one country together with the rest or separately, I mean, that means that we have to look at the market value of each country or unit separately. And in the UK, basically, we've seen that the environment is tougher. And with still going, this appeared in the contract to maintain the infrastructure in the Birmingham city. We need to take that hit. That doesn't mean that there's not a possibility of having a capital gain in the remainder when a sale takes place.

Well, I would like to start as always with toll roads, our main infrastructure division. And here we see growth across all the different toll roads that we have, both in traffic and revenues, and of course profitability. And the highlight would have to be, as always, the 407 ETR that records almost double-digit growth in revenue, EBITDA, a high single-digit dividend growth. Probably the most impacting result comes from the US, where our toll roads there are outpacing the kind of guidance we gave to the market two years ago. So in Texas, all the OBD that we are recording is growing more than 25%. And more than that, in the last part of the year, we got the benefit of all the openings of new roads around our existing network. One of them that we own, the I-35W that opened in July, is showing an incredible performance. Then, of course, we have airports, where I would like to highlight Heathrow. Heathrow keeps growing in all the different destinations, and with that growth in passengers, more than 80 million hits in a record every month. Heathrow manages to keep a very high client or passenger satisfaction. And of course, I mean, the Parliament in the UK approved the policy that allows the expansion of Heathrow, that is much needed and is very beneficial for the country. Of course, we also have airports in the UK, every Englishman, Southampton, that even though they have pressure in traffic because, I mean, low-cost airlines are showing reductions in their passenger numbers, they managed to grow EBITDA with commercial initiatives, retail initiatives, and also with cost contention. And then, of course, we have construction. In the contract inside construction, services construction traded along the lines respected with a 2.5% EBITDA-to-sales margin. And this reflects there's been cost pressure in many countries, especially in Poland. And regarding services, I would like to highlight Spain that grows more than 3% and shows very high margins compared to the sector. Australia also performed along expectations and in the last part of the year added backlog, so getting more growth for the coming years. And then in the UK, if we remove the Birmingham contract, I mean, the rest of AMI traded along the lines we expected with more than 2.5% margin of EBITDA. I would like to basically summarize as a good performance along expectations and beating the performance in our tolerance expectations.

Well, this year we have seen outstanding dividends from projects, infrastructure, also some projects from services. More than 600 million euros we received in dividends, and I'll speak about the trend going forward in a minute. With infrastructure, in terms of contracting, it was a year of lower contribution in construction, basically because there were no big projects closing. I mean, when you have financial close, you get an advance payment. Well, that didn't happen this year. In services, it was basically in the UK where we had investment in Sheffield, and they kept us from the life cycle part. Also, we had some waste treatment plants that we were finalizing construction, like Milton Keynes, and also we had a reduction in the payment days to suppliers. And well, that affected the contribution from the contracting businesses. In terms of our outlook going forward, in 2019 we'll receive dividends from NT in Texas for the first time, and in 2020 from the LBJ. So we should be seeing good performance in dividends from infrastructure going forward. And it's basically that value creation that we see in these concessions that are quite complex that brought our decision to move to allocate more capital there and move away from services, that also has good growth, but our prospects of value creation are higher in this infrastructure part.

Thank you.