Good afternoon, everybody, welcome to Ferrovial's conference call to discuss 2018 financial results. The results report and the presentation are available to you on our website. If you have any questions, you may ask them either through these webcast, sending an email to ir@ferrovial.com, or at this conference call in the Q&A session. With this, I will hand over to Mr. Rafael del Pino, Ferrovial Chairman, who will be leading this conference call.
Okay. Thank you, Ricardo. Good afternoon, thank you for attending the 2018 full year results presentation. I'm joined here by Íñigo Meirás, our CEO, Ernesto López Mozo, our CFO, and the CFOs of all of our businesses divisions. You already know, we are moving ahead with the sale process of the services division following the strategic review we announced last October. From October to December, we have been working with advisors on a detailed vendor and commercial due diligence. We expect the selling memorandum to be sent in the coming weeks, and while our preference is for a single deal, the main criterion would be to optimize value. We will provide more information after closing the deal. The plan of the company looking forward is to focus on the development of the infrastructure business, mostly in high-complexity concessions where we can add more value over the medium term.
In construction, our strategy will be more related to our infrastructure projects, concentrated in projects and markets that represent the main targets for Ferrovial. We also look to deploy capital at attractive levels, combining industrial growth with attractive shareholder remuneration. Looking to the 2018 highlights. We have closed another year of excellent growth in our infrastructure assets. We have a higher dividend distribution from all of our main assets, and we received a combined value of EUR 623 million, including EUR 135 from services, thank you to strong operating performance and good inflation evolution. Traffics have increased across the board. We have higher-than-expected EBITDA growth in our main toll roads. 407 ETR had an increase of 9.7%, NTE close to 30%, LBJ over 28%, all above the guidance provided in 2017 Cintra Capital Markets Day.
Heathrow has also shown great performance this year, with traffic exceeding 80 million passengers for the first time in history. Last June, the U.K. Parliament approved the Heathrow expansion, backing the creation of the best-connected hub airport in the world. Services, after announcing its sale, is presented as a continued activity within the financial statements, and the 2017 figures have also been restated, applying the same criteria to make them comparable. A consequence of that, we have a non-cash provision of EUR 774 million in relation to Amey. The book value of Ferrovial's participation in Amey now stands at EUR 103 million. The services division, excluding the Birmingham contract, has performed on track with the business plan. Construction has performed in line with expectations, with a tighter margin of 2.5% EBIT in the year, with cost pressure across all regions.
A quick review of the main data for the year, with a robust 9% growth in terms of net income from continued activities that reaches EUR 460 million. The net consolidated result after the fair value adjustment for Amey of EUR 774 million that we commented before turns into an accounting loss of EUR 448 million for the period. The next net cash position, ex infrastructure projects, stood at EUR 1.2 billion, including in that figure, EUR 261 million net cash from discontinued activities. If we look at the numbers in proportional EBITDA, with proportional consolidation, which is probably the best way to look at it from an economic point of view. Infrastructure accounted for almost 90% of proportional EBITDA, proportional EBITDA is EUR 1.3 billion, close to three times the reported EBITDA figure of EUR 484 million.
After this brief review, let me turn over the call to Íñigo Meirás , our CEO, who will discuss the operating performance of the business units. Íñigo?
Okay. Thank you, Rafael, and good afternoon to everyone. Let us start by looking at the main assets in our portfolio in Cintra, the 407. The traffic in that asset growth by the year-end in 2018 by 1.4%, helped by economic growth in Ontario and higher level disposable income despite the worst weather conditions in second half of 2018. Both revenues and EBITDA grew by almost 10%, boosted by the tariff increases. Dividends at 407 up by almost 9%, above the 5.8% expected in the best-case model given at the 2017 Investor Day. Cintra
In the first quarter of 2019, dividend payment was already approved in the amount of CAD 250 million, which is an increase versus last year of over 10%. The 2019 tariffs beat the expectations once again, with growth in line with last year's. It applied from February 1st. I would like to show you in the next slide from the latest customer satisfaction survey. This chart reflects that most of the customers perceive that they benefit from savings in terms of time, gas, and maintenance that offset most of the toll cost. This is good example of the high value for money perceived from 407 drivers. In the managed lanes, we had an outstanding performance continue at our managed lanes in Texas. In 2018, there was an excellent EBITDA growth for both assets, NTE by 30% and LBJ by 28% in local terms.
We have a strong quarterly performance in NTE, positively impacted by the NTE 35W opening. In fourth quarter of 2018, EBITDA was 48% up and in transactions by almost 19%. EBITDA margin improvement at the NTE was 84% versus 81% in 2017, and in the case of LBJ, 22% versus 79% last year. A strong traffic performance in both assets. On NTE by almost 11% year-on-year, on LBJ by almost 7%. On the back of the economic growth in the area, better connections in the network, NTE 35W, SH 183 and 130 connector open to the traffic in the second half of 2018, and higher capture rates than expected, since more and more drivers realize of the value of the express lanes.
The NTE 35W full opening took place last July, three months ahead of schedule, and it has shown a strong traffic performance with a faster traffic recovery from pre-construction levels than the NTE and LBJ. NTE 35W runs across a very important logistic area for large companies like Amazon, FedEx, or Walmart, with higher weight of heavy vehicles in this managed lane. These kind of vehicles pay from three times to five times what a light vehicle pays. Since the opening, the 19th of July, this asset has contributed with $27 million to the EBITDA. On top of NTE 35W, new connections have been opened to traffic in the last part of 2018, bringing more traffic to the corridor.
SH 183 connection between NTE and LBJ opened to traffic in last quarter of 2018, and 130 connection at the south of NTE 35W and also connectors with downtown. All these new connections imply less construction works and better flow. This all bodes well with the future growth of the assets. Taking a global view of the toll roads division, it is important to highlight that more than 50% of the toll roads EBITDA is coming now from the U.S. The division keeps growing and solid financial results in like-for-like terms, with double-digit growth in both revenues, up almost 14%, and EBITDA by almost 14% as well, on the back of higher contribution from managed lanes in the U.S. and traffic growth in the majority of assets.
The strong dividends Ferrovial received during the year, EUR 296 million, higher than in 2017 at the range of EUR 277 million, mainly on almost 9% dividend increase in 407. In 2019, the NTE will distribute its first dividend and LBJ most probably in 2020. The sale of the Greek toll roads, Central Greece and Ionian Roads, was completed in the last half of 2018 with capital gains reaching EUR 84 million, in line with our asset rotation strategy once they become mature. Jumping to Heathrow. Heathrow focus on passenger experience has delivered solid improvements alongside record passenger numbers. In 2018, 82% of passengers rating experience at Heathrow was described as great or excellent experience versus 45% 11 years ago. Excellent year for Heathrow, adding new domestic and international routes. Traffic hitting new highs while services standard have been maintained.
2018 was yet another record year in terms of passenger traffic, as Rafael mentioned before, up by 2.7% versus last year. This year, the airport reached 26 consecutive months of record traffic growth and exceeded 80 million passengers a year for the first time ever. Long-haul traffic was the key driver of growth, increasing 3.1% with load factor improving versus 2017. In terms of strong financial performance of the asset with EBITDA up by 4.5%, reflecting a strong retail growth up by over 8% and greater cost control, which has helped to reduce operating costs per passenger by almost 2%. Higher-than-expected dividends because of operating performance and higher inflation have helped dividend distribution once again in 2018.
Total payout to shareholders of GBP 500 million, which is above the initial expectations of GBP 455 million versus GBP 525 million in 2017. Included in this year, GBP 150 million extraordinary dividend. In terms of the WACC, the high inflation that has seen increased the regulatory asset base, and this is also a natural de-leverage for our participation there, and definitely it brings higher equity value to shareholders. Just for information purposes, this is the expected calendar we are working on related to the third runway. In terms of regulation, in addition to the work underway on the H7 framework, we have reached a commercial deal on airlines charges to apply prior to the start of H7. This has been signed with a number of our major airline partners. Under the deal, we will offer a rebate to all airlines depending on actual passenger traffic volumes.
Another benefit of the commercial deal is that it will enable all parties to concentrate on the longer-term aim of securing a regulatory settlement for H7, which will support affordable and financiable expansion of Heathrow. The deal remains subject to ratification by the regulator, the CAA. For the avoidance of doubt, it is not intended to replace the standard regulatory process for H7, which will continue in line with the CAA timetable. As for the non-regulatory U.K. airports, the AGS, strong EBITDA growth in the year, almost 6%, primarily due to the improvement of commercial income, almost 7%, thanks to a successful yield management in retail and car parks, besides operating expenses efficiency. OPEX was down by 1.3%. The EBITDA evolution since acquisition in 2014 has grown more than 43%, from GBP 68 million to GBP 97 million in 2018.
AGS paid out GBP 70 million at 100% of the equity versus GBP 147 million in 2017, the latter impacted by a GBP 75 million special dividend following the refinancing that took place in 2017. Traffic has been weak in the second part of the year, and we expect that to continue in 2019 due to the uncertainties related to the Brexit and a possible slowdown in GDP terms, as those are linked to the U.K. people traveling outside the U.K. Move to construction. Revenues were up by 14% like-for-like terms, with positive performance in all areas or regions, except for a slight drop in weather, -2.5% in comparable terms. Ferrovial Agroman revenue grew by almost 20% in like-for-like terms, primarily in the U.S., following the start of the works at Grand Parkway and the I-66 in Virginia, and then at the Denver Airport.
International revenues represented 84% with relevant weight of our main markets, Poland 32% and North America 28%. As mentioned at the beginning, the EBIT to sales is at 2.5% due to an increase of cost pressures, especially in Poland, where we expect it to remain under pressure both in labor cost and materials, at least for 2019. On services, finally, the division, excluding Birmingham contract, keeps performing as expected. Although the division has been reclassified as discontinued activity, in this slide, we see the figures prior to reclassification in order to analyze the performance. Revenues decreasing by 4% compared to 2017, mainly impacted by the reduced activity in the U.K. and in Australia due to the ending of the contract with the government of Australia, the immigration department. This was partially offset by the incorporation of rail and MoD contracts from Carillion in the U.K.
EBITDA stood at EUR 136 million, EUR 288 million less than in 2017 as a result of the impact from the Birmingham contract. Excluding this effect, the services EBITDA stood at EUR 371 million in 2018, which implies a 5.5% EBITDA margin. Ending of the immigration contract in Australia in October 2017. Order book at EUR 9.5 billion is in line with 2017. Looking toward the different geographies, in the U.K., EBITDA margin stood at 2.8%, excluding Birmingham impact versus 3.6% in 2017, in line with the guidance provided to the market to be between 2%-3%. Spain, solid profitability and growth. Revenues up by 2.7%, mainly driven by greater volumes in waste treatment and industrial maintenance. EBITDA increased by 2.5%, which has solid EBITDA margins of exceeding 10%.
Lastly, in Australia, Broadspectrum performed in line with expectations, with EBITDA margin of 3.6%, when guidance of the company was to be between 3%-4%. Net book value by almost 10% like-for-like terms. Well, with this review of the divisional and operational figures, I will hand the call over to Ernesto, our CFO, who will run through all the financial results.
Thank you, Iñigo. Well, we start with a slide regarding services of discontinued operations. We had a conference call yesterday, but I will try to add some color on some of the questions that you mentioned and were referred to today's call. Okay. The main impact for real financial accounts are that the accounting for assets and liability is at the lower of the current amount and fair value less cost to sell. That has meant that we have to take a provision of EUR 774 million as a result of the impairment of our participation, exposure in Amey. After giving effect to this provision, the book value of the Ferrovial's participation stands at EUR 103 million. A lot of you were basically asking questions about the EBITDA without Birmingham reference, which Iñigo just covered that.
You have seen that in 2018, ex Birmingham, there was a EUR 71 million EBITDA, ex Birmingham. Okay? That has been the reference for the enterprise value. Of course, then we have subtracted different liabilities, external liabilities, all of them. Instead of the year-end net cash position, we have taken the average debt for the period, also some working capital adjustment and other liabilities. We are not disclosing this or breaking it down, also for commercial reasons, as you can imagine. There's no subtraction in internal liability, right? All our exposure, be it equity or shareholders loans, amounts now to EUR 103 million. Okay? There was some back-and-forth questions with analysts, and we prefer to take that up front now.
Okay, regarding the rest of the slide, we can see that both services net profit and Amey provision are included in as discontinued operations, and we have just stated the 2017 figures. Also, by comparison, you will see that the continued operations keep growing really along all the lines. Okay, very important also to bear in mind that the remainder of the services division has not been adjusted. This is also part of the way the accounting rules work. In case the fair value is higher than the current book value, we cannot take a capital gain or a potential capital gain, right? We have not been able to net that effect against the provision of the Amey stake.
Okay, if we move now to the P&L review for 2018, well, the operating part has been covered already, and I will look at the lines below EBITDA. We have the permanent disposals that amounted to EUR 22 million, mainly due to the capital gains from the sale of the stake in the Greek toll roads, Central Greece and Ionian Roads, for the sum of EUR 84 million before tax. Basically, the other big contributor below the line is the net financial result, where you see there was an improvement this year vis-à-vis 2017, and it is basically to lower interest cost on some debt. Then Broadspectrum doesn't have any longer a high yield and has a cheaper debt. Also our inaugural bond at Ferrovial was also canceled, and those debts were higher than the average.
Of course, also, the net cash position has been able to enjoy a higher interest rate environment, and that has helped to reduce the overall financial cost of the company. In terms of the equity accounted affiliates, with the 407 ETR contributing EUR 136 million and Heathrow, EUR 70 million. The excellent operational performance has followed through the different lines. Only in Heathrow, we don't have the benefit of last year's positive mark to market of the hedging instruments. It's positive but minor, and that affects the growth, but all the lines are contributing healthily. The net income from continued operations, as I mentioned, has grown by 8.6%. The number for the discontinued activities operations, including the Amey fair value provision of EUR 774 million, plus the net profit from services of EUR 77 million loss.
With all these impacts, the net income of the total group reached a negative or a loss of EUR 448 million versus the gain of EUR 154 million in 2017. Very important to remind all you that the provision is a non-cash provision, the fair value one. If we move into the cash flow generation, ex infra, we have the next slide where we can go first through the sources of our cash. As was highlighted in the prior slides, we have more than EUR 600 million coming from projects, quite a substantial Increased very good contribution from the 407 ETR and airports, as mentioned before. Services also contributed from projects, concession type, that reached EUR 131 million, mainly in Spain. In terms of FBD, we have EUR 144 million. We are also taking the adjustment of the non-cash impact of the Birmingham provision.
I can anticipate the question of what has been the cash outflow regarding the Birmingham provision. If you remember, it was EUR 236 million. The difference between 236 and 155 has been the cash outflow regarding that provision. We have the disposals that reached EUR 230 million, and the rest of sources has been financing of EUR 105 million. Where has that cash gone into? The first one is shareholders' remuneration at EUR 520 million. We have working capital consumption, and I will break down that a little bit. We have at Amey a consumption of EUR 128 million, and the main contributors are pretty similar in size. One of them is the reduction of payment days to suppliers, and that is in the region of EUR 40 million, four, zero. We also have the CapEx of the life cycle at the Sheffield contract. That is a similar amount.
This is the main explanation of the working capital consumption at Amey. Both items are not expected to repeat in 2019. The other part that is remarkable probably is the working capital consumption at Budimex, also around EUR 120 million. The comparison also in 2017 was flattered by the collection of advanced payments from some big closing financial close of projects in the U.S. There has been none of that in the group this year. After the working capital review, we go to investments of EUR 332 million and then others covering all the different items, and we reach a net cash position, ex infrastructure projects, of EUR 1.236 billion, EUR 1 billion, 236 million. Very important also when to look at the balance sheet, you will see that there's EUR 261 million in the held-for-sale ex infrastructure projects with services.
Of course, that's cash that will be available eventually for shareholders. After that review of the cash elements, I will hand it back to Rafael for the shareholder remuneration and concluding remarks.
Okay. Thank you, Ernesto. Well, you have already read in the press release that the board has today proposed a scrip dividend and share buyback similar to last year for the approval of the general shareholders meeting. I would like to wrap up the call reiterating the message to the shareholders that we are working to improve the company's performance through four main levers. One is the divestment of the services division. The second one will be mitigating risks in contracting by concentrating on a fewer number of geographies and adequate type of projects. The third one will be prioritizing capital allocation to U.S. infrastructure assets as opportunities arise. Lastly, we'll be managing properly our current infrastructure assets to maximize return to shareholders.
It must be noted that NTE will distribute its first dividend in this year, in 2019, and we expect LBJ to do the same in 2020. With this, I would like to close the call. Thank you for your time today, and we open now the floor to any questions you may have.
If you would like to ask a question, please press star followed by one on your telephone keypad now. If you change your mind and wish to withdraw your question, please press star followed by two. Whilst asking your question, please ensure that your line is not muted locally. Our first question today comes from Bruno Silva from CaixaBank. Bruno, your line is now open.
Yes. Good afternoon. Thank you very much for taking my questions. The first one, starting inevitably with services sale. Just to clarify two points. First, are you going to set a deadline for receiving offers for this year? I assume that given that you have assumed as a discontinued activity, you should have a deadline this year, but are you setting a deadline for receiving offers? Relating with Birmingham and the impairment that you have done, have you accounted any amount and disclosed amount for a potential exit from the contract? Second, inferring from slide 26 on capital allocation priorities that are widely known, can we infer also that ADP process is not a priority for over anytime soon?
thirdly, I would appreciate if you could provide a little bit more color on the outlook for the construction business next year in terms of previous guidance that you had given in terms of margins, and any other aspect that you find critical to help us in setting our estimates. Thank you very much.
Okay. Thanks, Bruno. This is Ernesto. I will take the first ones regarding the divestment of services. You asked about a deadline for offers. Yes, this will be natural, but the clock starts ticking when we send documentation away. It will be the regular process of information out, non-binding offers, and then after that, we will be selecting. As we have said previously, we'll retain flexibility in general around the process. You're right, everything is expected to close this year. No further comments on timeline in the 12 months. Okay. You were talking about an amount set aside for the exit of the Birmingham contract. When I discussed the enterprise value from EBITDA, then I talked about liabilities and not breaking that down, we don't disclose that, and we don't disclose if it's included or not for commercial reasons. Okay.
We won't give any information on those liabilities on if it's included or not, any exit amount. The next question regarding ADP, Íñigo will take it.
Hi, Bruno. Good evening or good afternoon, depending on where you are. I think in terms of ADP, we have to recognize that we are following the process, as you know, it's at a very early stage, and I think that still we are waiting to see how the process evolves because there is not a clear decision already taken by the French government to proceed in one way or in another, selling a majority stake or more minority stakes. Regarding the construction outlook, I think that Ernesto mentioned something related to our views for 2019, is that you will see the margins at the current levels, at least for this year, 2019. In terms of 2020, we're a little bit more positive because we think that you can see a slight recovery in margins, more driving for our operations in Poland and in the U.S.
Okay. Thank you very much.
Our next question comes from Vittorio Corelli from Santander. Vittorio, please go ahead.
Hi, good evening. Three question. I will do these questions one by one. The first one relates to Heathrow. There was the regulator publish a WACC, right? Of 2.8 something, right? Does it make any sense for Heathrow to invest in the third runway with this WACC, take into account that the cost of the capital is much higher? Can you refuse to go further in the third runway investment?
Okay. You were asking to answer you one by one, right? Well, first one, this WACC refers to a traffic control. It has some resemblance, but not really the same as the other studies that have appeared by PwC and the regulator have said that, I mean, takes down the reference but doesn't make those data analysis. Okay. Basically, for expansion, things have to be worked out. It's too early. Our expectations, of course, is that there's a duty for affordability and financial ability, and financial ability means that is attractive to invest. That's the only comment we have.
Okay. Second question. The chairman said that you are looking for a single deal for maximize price for the service unit. What does it mean? That you want to sell the whole perimeter to a sole buyer? If this is the case, is this the right way to maximize price?
Okay. Basically, we have received a wide number of inquiries or expressions of interest. There has been, let's say, more emphasis in the whole. All options remain open, and maximizing value will depend on the different offers. Right? It's not the time to second-guess.
Okay. Third question. Can you repeat, please, the nature of this no cash impact from Birmingham provision of EUR 155, which is between the sources. Apologies. Thank you.
No, the only thing I mentioned when I was covering the slide is that the provision has been €236 million. That we took in February, okay? That provision still has €155 outstanding. The difference has been basically using up the provision and cash out.
Okay. Thank you. I finish.
Our next question is from Elodie Rall of Macquarie. Elodie, your line is now open.
Good evening, everyone. My first question is to do with the managed lanes. Obviously, you're saying the NTE is going to pay its first dividend in this year and the LBJ in 2020.
I'm sorry, we are not getting anything. If you could basically speak closer to a microphone?
Hi. Sorry. Can you hear me now?
Now I can hear.
Okay, great. Sorry about that. Obviously, the NTE and the LBJ are going to pay dividends this year and next year for the first time. With that, my understanding is that you will refinance the debt at those assets. My question is really, given you're going to be losing the cash flow that comes from services, can you re-leverage those assets to accelerate dividend upstreaming to replace some of the services cash flow? That's my first question.
Thanks. Paco's working on all that. He will give the answer.
Hello, Elodie. This is Paco. Well, the plan is that we are going to refinance now NTE, and most likely LBJ as well. The idea is not to review, among other things, because according to the contract, we should share the refinancing gain with the grantor.
When do you foresee a scenario where all of your dividend is covered by infrastructure cash flow? In that case, how long will it take to get there?
Just because, it will happen next year, it's a matter of how you embed the financial expenses are coming down. NTE is working for more coverage. On a gross basis, it should be next year.
Okay. All right. The dividends that the LBJ and the NTE are going to pay are initially special dividends because the cash has been tied up. It's not really an underlying, is that correct?
We expect an underlying every year after that. As Paco mentioned, we are not looking to review. Basically, the growth of operations should be providing a very good floor.
Okay. Thank you.
Our next question comes from Marcin Wojtal from Bank of America Merrill Lynch. Please go ahead, Marcin.
Yes. Good evening. A couple of questions here. I just wanted to come back to construction. You mentioned that you're looking to reduce risks and you want to concentrate on areas where you have synergies with infrastructure assets. Are you suggesting perhaps that you could be looking to exit some countries or some businesses in the construction division? Could you provide a little bit more color on what is your thinking, in terms of your, let's say, strategy for construction? Question number 2, regarding Heathrow expansion. Heathrow has indicated that they could consider a capital increase to fund a third runway construction. Could you confirm you would be interested to fully subscribe to that capital increase to keep your stake at 25%?
Okay. Regarding the first question, Íñigo Meirás speaking. In terms of construction, what we are saying is that I think that today, among five countries, the U.S., Canada, Spain, Poland, U.K., and with few roads in Australia, we have more than 90% of our revenue in the construction division. For the last year, for a year, we were testing different markets. An example of that is the Middle East. After that testing, we decided to be more focused in the core markets that I mentioned to you before. This is the main driver of the strategy of that. I think now to open the opportunity to expand the construction activity to new geographies.
Well, regarding Heathrow, basically two runway, Heathrow keeps providing dividends. Of course, there will come a time when you have expansion. Our plan is to basically invest there. That's our base plan. If it changes, we'll let you know.
Okay. Thank you very much.
Our next question is from Stephanie D'Ath from RBC. Please go ahead, Stephanie.
Hi, thanks for answering my questions. Maybe rephrasing Marcin's questions slightly differently, what's the strategic rationale to, for instance, remain invested in Budimex, if your plan is to focus on construction where there is overlap with concessions? Secondly, what are your plans with the cash you will be raising from your services disposal? Maybe linked to that, if you could give us your views on, the SNC-Lavalin stake disposal in the 407. Would you be interested in buying or adding to your 407 stake? Maybe if there is a good buyer ready to pay an expensive multiple, would you be ready to sell some of your stake in that process? Thank you.
Stephanie, the line was not that great. I will try to redo all the questions, we'll take them. I guess that the first one was if we were entertaining divest in Budimex. Please confirm if that's the case.
Yes.
The other one was use of cash coming from the services divestment, capital allocation there.
Yes.
Okay. The third one was longer and was about SNC-Lavalin potential divestment of the 407, if you were interested. I missed that a little bit, was quite long, if you could repeat that one, please.
Yes. Would you be interested in adding to your 407 ETR stake if they are selling at a, I think you have a right of preemption, if the buyer they find is not paying as much as you think it is worth, and therefore you'll be ready to step in and buy more? Or if the buyer is actually paying expensive multiple, would you be looking at maybe even selling yourself a small stake to that buyer?
Okay, Stephanie. With the 407 ETR, before we said that our bid offer was quite wide, normally things happen in between. We will have to analyze at the time. Regarding the proceeds from the, let's say, divestment from services, it was covered by Rafael in the first slide. We're looking to invest in infrastructure, for shareholder remuneration, the normal balance, too early to tell any breakdown on how that would be done. Regarding Budimex, I can say that at this moment in time, we are not considering any strategic review of our stake in Poland.
Thank you.
At this time, we do not have any further questions from the phone.
We have some questions that came through internet. One of them is if we could provide the book value of the whole services division. Well, it's in our accounts, and I will save you some time just by saying the ballpark number of the combination of all these things is slightly close to EUR 1.6 billion. That includes everything, Spain, AAR, international division, and Broadspectrum. We have a question regarding the Heathrow deal in 2019, and, well, this was covered by the Heathrow conference call, and we said flexibility, given the uncertainty, but Heathrow tends to do better. We have to wait and see how the different developments in the U.K. proceed. I think this is it from questions from internet, because everyone was about capital allocation on the proceeds from the sale of the services division.
Having covered all that, I hand it back to Rafael.
Well, all I have to say is thank you very much and goodbye. Thanks for spending some time with us.
Ladies and gentlemen, this concludes today's call. Thank you all for dialing in. You may now disconnect your lines.