Presentation of results_3q08. January-September. 6 November

Transcription

1 Presentation of results_3q08 January-September 6 November relaciones.inversores@abertis.com 1

2 Contents 1. Introduction Key data Analysis of the consolidated income statement Analysis by sectors Toll Roads Telecommunications Airports Car parks Logistics parks Analysis by geographical markets Consolidated balance sheet Debt structure and trends Consolidated cash flow statement Investments Appendices Appendix I: Summary of significant events Appendix II: Events subsequent to 3Q Appendix III: Contact details Appendix IV: Disclaimer

3 1. Introduction abertis performance over the first nine months maintained a positive stance in all sectors, enabling the company to largely absorb the impact of the current economic slowdown and certain isolated factors on toll roads. These market conditions, which are more pronounced in Spain than in France, are not expected to change over the coming months. Consequently the diversification process by sector and geographic market undertaken by abertis in recent years is now demonstrating its worth, serving to balance and stabilise earnings in the face of the sharp global economic downturn. That said, and as mentioned in previous reports, abertis 2008 performance and especially traffic data - are not fully comparable due to a series of one-off events (Aumar due to the opening of various alternative routes in March 2007; Aucat as until May rail service was free in the Barcelona area to compensate commuters for inconvenience caused by construction work on the high-speed train route; Acesa due to expansion work on the AP-7; and a lorry drivers strike in June, which affected our entire network in Spain and marginally in France) and the adverse weather conditions, which negatively impacted our traffic volumes. abertis continued to pursue its diversification strategy in the first nine months of 2008 by acquiring 100% of Desarrollo de Concesiones Aeroportuarias DCA in the airport business for 276 Mn, and in the Telecoms business with the purchase of 28.4% of Hispasat for a total of 226 Mn. In the Toll Roads sector, the company is negotiating the acquisition of 51% of Invin S.L. (which controls 48% of Autopista Central and 50% of Rutas del Pacifico) for around 376 Mn; this agreement also covers the acquisition of a minority stake in Autopista Central, which will increase the combined shareholding of the two partners in Autopista Central from 48% to 50%. The agreed deadline for this deal is 30 December Also, and subsequent to 3Q08, abertis has continued with its consolidation policy for strategic assets in which it holds minority stakes: on 21 October it announced the acquisition of an additional 5% of Hispasat from EADS/Casa, thereby strengthening its position as the main shareholder with a direct 33.4% stake. In 3Q08 it is likewise important to note that on 30 September the consortium headed by abertis did not extend its bid for the Pennsylvania Turnpike toll road. This is because after extending its offer twice to help comply with the legislative process in Pennsylvania, based on forecasts by the state authorities in May, PTP believed the situation was not propitious for a third extension. The expiration of the offer will allow the consortium to recoup the guarantees provided and release it from the financing commitments agreed for the project. More than the final outcome of the process begun by the Pennsylvania government, the technical quality of the offer and the ability to forge a top-flight financial offer amid a complex and difficult financial market backdrop underscore the potential of this type of project and abertis ability to lead such a project. The research conducted and the knowledge acquired in the project, as well as the work developed alongside the State authorities, leave abertis and its partners in excellent shape to reconsider the project when the necessary legislative changes have been made and the financial conditions are right. With regard to the consolidation scope, the figures are affected by the acquisition of DCA, with 9M08 figures showing an impact of six months on the income statement ( 17 Mn of revenues), and by Hispasat (acquisition of 28.38%), with accounting effect from 30 June Consequently Hispasat was only proportionally integrated for 3 months at the end of September 2008 ( 12 Mn of revenues). It is important to emphasise that Invin S.L. (Chile 3

4 toll roads) was not included in our accounts at the end of September as the transaction has not been completed. As of 26 June 2008, the spin-off process at Schemaventotto was completed (the company which controlled 50.1% of Atlantia). Now that the process is complete, abertis holds a direct 6.68% stake in Atlantia (through its wholly-owned subsidiary abertis Italia). As of that date, the Atlantia stake is no longer consolidated under the equity method and is classified as a financial investment. (impact of 23 Mn on the income statement to the end of June). The key figures for 3Q08 compared to the same period last year are as follows: Activity: positive performance remained positive in all sectors, enabling the company to largely absorb the impact of the current economic slowdown and certain isolated factors on the toll road business. Important to remark the positive performance of the numbers of passengers at TBI which increased by 5.9%. At the toll road business total ADT 1 fell by 1.6% (ex-aumar effect), continuing the negative trend first noted in May and June 2008 and which is set to continue in the following months. o At the toll road business the negative performance of abertis traffic figures compared with September 2007 (-2.6%) was due primarily to an unfavourable showing by abertis Spain's ADT (down 3.3% ex Aumar and 4.9% total) in like-for-like terms, with Sanef s ADT performance down 1.1% to September. As well as the negative impact of the macroeconomic situation, and the excellent traffic figures this time last year (+3.5%, +4.2% ex Aumar), the following factors should be considered when analysing traffic figures for this period: - The opening of parallel routes at Aumar (negative impact of 1% on total abertis ADT and of 1.6% on abertis Spain s ADT), ex Aumar, total abertis ADT dropped 1.6%, while that of abertis Spain fell 3.3%. - Aucat: The Castelldefels-Sitges stretch was negatively affected by the free rail service, an alternative to the C-32 on this stretch, until May. The closure of this rail corridor providing access to Barcelona from the south in the final months of 2007 also caused a higher than normal increase in this concession s ADT in this period, which also alters comparisons. - Acesa: A decrease in traffic on the Mediterranean-Vilaseca stretch due to widening of the toll road between Barcelona and Tarragona (agreed AP-7 project). - Impact of the French TGV high-speed train on Sanef s A4 road and of the high-speed train route on acesa - Lorry drivers strikes in June. - Poor weather conditions in May and June 2008, in contrast to good weather in 1Q07. 1 In 2008 and 2007 (for comparative purposes), three small changes in the ADT calculation were made, which affect their absolute values but have virtually no impact on percentage changes: 1) ADT, at all group concessions, is considered to be ADT from tolls (excluding exempt transactions), 2) for the calculation of aggregate ADT, the company accounts for 50% of Avasa's ADT rather than the previous 100% and 3) the ADT calculation includes total kilometres for each concession, including kilometres on free stretches (until now only toll kilometres were counted). 4

5 - Economic downturn, the effect of which has become more evident in the third quarter of Rising average oil prices, approaching peaks during this period. o o In the airport business, it is worth highlighting the continuation of the positive trend: the number of TBI passengers rose 5.9%, with outstanding contributions from Luton (+4.6%), Orlando (+8.6%) Skavsta Stockholm (+33.2%) and Bolivia (+6.8%). The car parks business had 98,340 managed spaces at the end of September, an increase of 9,076 new managed spaces (up 10.2%). Revenues increased by 1.6% to 2,793 Mn, due mainly to the strong performance of the diversification business, the impact of the incorporation into the consolidation perimeter of the DCA group and Hispasat, and by toll revisions, which offset the poor performance of toll road traffic and a negative effect on TBI s figures stemming from eurosterling exchange rate trends and the inclusion of SFB Fueling in The performance by business in 2008 is as follows: o The toll road sector (75% of total revenue and 85% of EBITDA), grew 1%, affected by negative traffic (down 2.6%), which was offset by toll revisions, discounts, improvements in the traffic mix and others (+3.1%). o o o o The telecoms business (11% of total revenue and 7% of EBITDA) continued the favourable performance seen in 1H08, with revenues rising 9.4% to 317 Mn. The strong performance over the first nine months was due to price increases to reflect inflation and the wider analogue coverage of some channels, regional DTT coverage and an increase in wholesale services to operators. The consolidation of Hispasat is offset by the drop in revenues from the Nexus network and Agora. The revenues of the airports business (8% of total revenue and 5% of EBITDA) are not fully comparable since 2007 included SFB Fueling under the proportional method (it has been accounted for under the equity method since 4Q07) and due to currency depreciation in 2008 (-13% average exchange rate in the period vs. the euro, 31 Mn impact) and the addition of DCA (+ 17.1Mn). On a like-for-like basis, revenues rose 7.8%. In the car parks business (4% of total revenues and 2% of EBITDA), revenue performance cannot be compared either, since 2007 included 2 Mn in capital gains from the sale of parking spaces; revenues grew by 4.2% (+2% in real terms) on a like-for-like basis. Revenues at the logistics parks sector (1% of total revenue and 1% of EBITDA) grew by 126% thanks to the acquisition of logistics assets acquired at the end of 2007 (adding 6 Mn), and the effect of the capital gain on Port Aventura ( 12 Mn). EBITDA amounted to 1,770 Mn, down 0.7% on the previous year. Profit attributable to the parent company amounted to 541 Mn, which represents a small 3.1% decrease, mainly due to the decrease in EBITDA, the increase in net financial losses due to the new acquisitions and the decline in earnings from companies accounted for by the equity method (chiefly Atlantia 23 Mn vs 33 Mn in 5

6 2007). These negative impacts were offset by the greater contribution of equity consolidated companies (Eutelsat), the higher dividend from Brisa and the positive effect of the reduction in the corporate income tax rate in Spain. Net debt at 9M08 amounted to 13,240 Mn (57% non-recourse). Debt at fixed rates remains high (77%) as does long-term debt (92%), with an average maturity of 7.6 years. Gross debt stood at 13,748 Mn ( 12,873 Mn at the end of 2007) largely due to the financing of the acquisition of logistics assets ( 202 Mn), DCA ( 276 Mn), the acquisition of 28.38% of Hispasat for 226 Mn, and the purchase of treasury stock ( 201 Mn). The average cost of the debt following refinancings and new issues was 5.3%. o abertis currently has 1,195 Mn of unused credit lines and a cash positive situation at 30 September 2008; which allows to comfortable deal with all debt repayments falling due in 4Q 2008 ( 312 Mn). Net cash flow (prior to investments and dividend payments) generated in the first nine months amounted to 1,079 Mn, up 0.2% yoy ( Mn in 9M07). Group capex in the first nine months totalled 929 Mn (82% expansion capex): DCA ( 276 Mn), Hispasat ( 226 Mn), 170 Mn operational capex and 257 Mn in other expansion capex. These figures do not include the acquisition of the shareholdings in the Chilean concessionaires Autopista Central and Rutas del Pacífico, which we expect to be completed by the end of Dividends and the bonus share issue On 30 September the board of directors of abertis decided to increase the 2008 interim dividend by 7.1% from 0.28 per share to 0.30 gross per share in Payment was made on 28 October (trading date ex-dividend), bringing the total amount to Mn. This increased dividend further bolsters abertis shareholder remuneration policy, based on an annual dividend plus a 1-for-20 bonus share issue. This means the total amount paid to abertis shareholders final dividend, bonus share issue and interim dividend will be 14.8% higher than in At the closing of year 2007, abertis pay-out amounted 52.4%, and at present dividend yield is in excess of 4%. Outlook for 2008 abertis is expected to continue to perform well across all its businesses for the remainder of The only exception is the toll road unit which, as mentioned and anticipated in the results for the first half, is affected by the current global downturn and especially the Spanish business must deal with the impact of a series of one-off events. This situation is likely to remain largely unchanged for the next months. The current situation, which is mostly affecting the toll road division, highlights the wisdom of abertis decision to opt for a business model focused on mobility, transport and telecommunications infrastructure management and which is diversified by sector and geographic market. It is a stable, balanced and robust model which, in the current circumstances, permits the company to consolidate its positions and to pursue attractive growth opportunities when they arise. 6

7 As anticipated, the outlook for 2008 presented at the end of June was subject to change, given that some of the working assumptions on which it was based did not prove accurate: o o o Macro conditions are worse than originally forecast. The consolidation of assets is being delayed: Autopistas Chilenas (still pending completion) was expected to be consolidated in the second half of 2008, though the transaction is now unlikely to be completed until the end of the year. and the deterioration in the traffic mix, since Spain has the greatest impact on momentum. 7

8 2. Key data Trends in the key business and financial indicators: Business indicators 3Q2008 3Q2007 Chg. Toll roads: Average Daily Traffic (ADT) Acesa 36,710 38,136 (3.7%) Aumar 24,292 26,578 (8.6%) Aucat 32,895 34,965 (5.9%) Iberpistas 30,473 31,813 (4.2%) Avasa 15,277 14, % Castellana 6,362 6,415 (0.8%) Aulesa 5,476 5, % Total Spain 27,681 29,119 (4.9%) (1) Sanef (France) 24,177 24,456 (1.1%) Gco (Argentina) 69,844 65, % Total abertis 26,496 27,201 (2.6%) (2) Telecom No service centres DTT 5,812 3, % % DTT coverage 88% 85% 3.5% Airports TBI Total passengers 19,285 18, % DCA Total passengers 27,450 27, % CODAD No flights 93,406 85, % Car Parks: Distribution of spaces No. of spaces 86,011 76, % No. of metered parking spaces 12,329 12,464 (1.1%) Total 98,340 89, % (1) Excluding the aumar effect, a drop of 3.3% (2) Excluding the aumar effect, a drop of 1.6% 8

9 Financial indicators ( Mn) % of total 3Q2008 3Q2007 Chg. Total revenues 2008 Toll Roads 2,097 2, % 75.1% Telecom % 11.3% Airports (4.8%) (1) 8.5% Car Parks % 3.5% Logistics % 1.3% Corporate and other services 8 14 (41.8%) 0.3% Total revenues 2,793 2, % 100% EBITDA Toll Roads 1,509 1,552 (2.8%) 85.2% Telecom % 7.1% Airports (0.2%) (2) 4.8% Car Parks (8.8%) 2.1% Logistics % 1.3% Corporate and other services (10) (16) 38.6% (0.6%) Total EBITDA 1,770 1,782 (0.7%) 100% EBITDA Margin Chg p.p. Toll Roads 71.9% 74.4% (2.5) Telecom 39.9% 39.6% 0.3 Airports 35.9% 34.3% 1.6 Car Parks 38.3% 42.9% (4.6) Logistics 62.4% 34.9% 27.5 Corporate and other services n.a. n.a. n.a. Total EBITDA Margin 63.4% 64.8% (1.4) 3Q2008 3Q2007 Chg. EBIT 1,174 1,197 (2.0%) Net profit (3.1%) Net cash flow 1,079 1, % Net debt 13,240 12,510 (3) 730 Comment: contribution to the group, with consolidation adjustments made at source (1) 7.8% like-for-like basis (excluding exchange rate and change in consolidation scope, SFB Fueling and DCA) (2) 5.0% like-for-like basis (excluding exchange rate and change in consolidation scope, DCA only) (3) Net debt year-end

10 3. Analysis of the consolidated income statement ( Mn) 3Q2008 3Q2007 Chg. Total revenues 2,793 2, % Operating expenses (1,023) (967) 5.7% EBITDA 1,770 1,782 (0.7%) Depreciation (597) (585) 2.0% EBIT 1,174 1,197 (2.0%) Finance results (408) (399) Share of profits (losses) of associates PROFIT BEFORE TAX (4.5%) Income tax expense (228) (245) PROFIT FOR THE PERIOD (3.6%) Attributable to minority interest (58) (63) NET ATTRIBUTABLE PROFIT TO EQUITY HOLDERS OF THE PARENT COMPANY (3.1%) Revenues Revenues climbed 1.6% in the first nine months to 2,793 Mn. The strong performance of the diversified business and fee increases in large part explain this increase. In the toll roads sector, operating revenues advanced 1% due to toll revisions and the positive impact of 2008 being a leap year and Sanef (+4%), tolls, mix and discounts and the strength of telematics services revenues. In the Telecom s business revenues advanced 9.4%; these earnings are virtually comparable due to the incorporation of Hispasat in 3Q08 (+ 12 Mn), offsetting the decline in revenues from the Nexus network ( 10 Mn in 9M07) Like-for-like airport revenues (excluding exchange rate and change in consolidation scope effects, SFB Fueling and DCA) increased by 7.8%, driven by a sharp rise in TBI s passenger traffic numbers (+5.9%) and higher fees, with passenger numbers growing by 4.6% at Luton and revenue per passenger by 9.3%. ( Mn) 3Q2008 3Q2007 Chg. Revenues Sanef 1,049 1,007 4% Acesa (2%) Aumar (6%) Aucat (3%) Iberpistas (6%) Avasa % Gco (5%) Others % Total toll roads 2,097 2,086 1% Telecom % Airports (5%) Car Parks % Logistics % Corporate and other services 8 14 (42%) Total revenues 2,793 2,750 2% Note: Contribution to the group, with consolidation adjustments made at source By sectors 11% 4% 8% 1% 75% 10

11 Car parks boosted its revenues by 4.2% like-for-like, due mainly to strong subscriber revenues and changes to the consolidation structure. Logistics revenues rose sharply (+126%) as they include 6 Mn from the acquisition of logistics assets from Inmobiliaria Colonial and the capital gain from the sale of 2.88% of Port Aventura for 12Mn. Corporate and other services includes Serviabertis and the contribution of the holding company Operating expenses External services and personnel costs rose 5.7% overall, mainly due to HIT/Sanef +11% (integration of Webraska personnel and other impacts) and telecom. 9%, from a higher group charge (new revenues for brand royalties) and an increase in supply tariffs, etc. Also, September 2007 included the negative impact of the Xfera guarantee (- 13 Mn). It is important to highlight that ACDL/TBI s expenses grew 9.9% in sterling (-14% in euros) excluding SFB Fuelling. This is strong growth since in July 2008 the step-up cost agreed for fees at Luton airport came into effect. Costs at the car parks business rose 11% due to the change in the consolidation method. Personnel costs totalled 426 Mn (42% of operating expenses), an increase of 8.5% from 9M07, mainly because of a 5% increase in the workforce and previously-negotiated salary rises. The average workforce in 9M08 stood at 11,911 people (11,338 in 2007) EBITDA EBITDA fell 0.7% year-on-year to 1,770 Mn due to the poor performance of toll road traffic, higher operating expenses and a negative effect on incorporated ADT EBITDA figures stemming from eurosterling exchange rate trends At the toll roads business, EBITDA dropped 3% due to lower revenue growth in the case of Acesa (agreed 5.9% salary increase), an iberpistas capital gain effect in 2007 ( 6 Mn) and Sanef (due to the integration of Webraska and higher growth at businesses with a smaller margin). At the Telecommunications division EBITDA advanced 10.2% as the incorporation of Hispasat (+ 10 Mn) is offset by the negative impact of the transfer of expenses in 2008 (no consolidated impact), lower revenues from the Nexus network and Agora and the negative impact from Xfera in 2007 (already explained). Like-for-like airport EBITDA grew 5% due to the introduction of the stepup cost at Luton airport. ( Mn) 3Q2008 3Q2007 Chg. EBITDA Sanef % Acesa (4%) Aumar (8%) Aucat (6%) Iberpistas (6%) Avasa % Gco (28%) Others (7%) Total toll roads 1,509 1,552 (3%) Telecom % Airports (0%) Car Parks (9%) Logistics % Corporate and other services (10) (16) 39% Total EBITDA 1,770 1,782 (1%) Note: Contribution to the group, with consolidation adjustments made at source By sectors 5% 2% 1% 7% 85% 11

12 3.4.- Depreciation Depreciation largely unchanged from 2007 at 597 Mn (up 2%). Telecom includes an increase in depreciation of analogue assets. ACDL/TBI s year-on-year comparison is affected by sterling's weakness against the euro. ( Mn) 3Q2008 3Q2007 Chg. Toll Roads (459) (461) (0%) Telecom (61) (52) 18% Airports (49) (52) (5%) Car Parks (14) (12) 15% Logistics (6) (3) 75% Corporate and other services (7) (5) n.a. Total (597) (585) 2% EBIT EBIT totalled 1,174 Mn, giving a gross margin (EBIT/revenues) of 42.0% (43.5% in 2007) and a decrease of 2.0% (for the reasons explained earlier) Finance results Net financial losses grew 2.2%, mainly due to the impact in 2008 of the acquisition of the DCA Group (starting in March 2008), the purchase of Hispasat (from July 2008), the acquisition of logistics assets, the acquisition of an additional 4.6% of Brisa and nine months of financial expenses at Eutelsat (in 2007 financial expenses began to accrue on 23 January), and a positive impact from a higher dividend from Brisa ( 10Mn thanks to a higher stake and increase in dividend payout) Share of profits (losses) of associates This fell mainly due to the classification of Atlantia as a financial investment from July The equity-accounted profit chiefly comprises the increased contribution of Eutelsat to 36 Mn (mainly due to its contribution to earnings and the provisional accounting impact of the PPA). The rest of the equity-accounted profit is mainly derived from Atlantia ( 23 Mn) up to the date of the spin-off of Schemaventotto Income Tax Expense The corporate income tax expense is not strictly comparable due to the reduction in the Spanish tax rate (from 32.5% in 2007 to 30% in 2008), which has a positive impact in 2008 due to lower effective taxation (+ 14 Mn). Almost no impact from the reduction of the tax rate in the UK from 30% in 2007 to 28% from April In addition September 2007 includes the positive impact stemming from a reduction in deferred tax liabilities due to the abovementioned reduction in the UK tax rate (+ 13 Mn). At the end of 9M08, the effective tax rate was 29.8% (32.3% in 2007) Attributable to minority interests The minority interests presented a greater attribution to HIT partners due to the improvement in positive earnings at HIT/Sanef Net attributable profit to equity holders of the parent company Profit attributable to the parent company amounted to 541 Mn 12

13 4. Analysis by sectors Toll Roads Activity and results analysis Profit and Loss account ( Mn) 3Q2008 3Q2007 Chg. Revenues 2,097 2, % EBITDA 1,509 1,552 (2.8%) Margin 71.9% 74.4% (2.5) p.p. EBIT 1,124 1,165 (3.5%) Margin 53.6% 55.8% (2.3) p.p. EBIT (2) 1,050 1,091 (3.8%) Margin 50.1% 52.3% (2.2) p.p. Note: Contribution to the group, with consolidation adjustments at source. EBIT: excludes depreciation of revalued assets (PPA Sanef) EBIT (2): includes all depreciation expenses Activity and results analysis abertis 9M08 ADT totalled 26,496 vehicles per day (ADT down 1.6% in likefor-like terms ex aumar, down 2.6% in real terms). The negative performance of abertis traffic numbers compared with 9M07 was due primarily to an unfavourable showing by abertis Spain's ADT (down 3.3% ex aumar, 4.9% in real terms) with Sanef s 9M08 ADT better but also down 1.1%. GCO registered a 5.8% increase in accumulated ADT. This performance is due to the following: 1) The opening of parallel routes at Aumar (negative impact of 1% on total abertis ADT and of 1.6% on abertis Spain s ADT) 2) Aucat was negatively affected by the free rail service offered to compensate commuters for inconvenience caused by work on the high-speed train route, an alternative to the C-32 on this stretch, until May) 3) Acesa registered a decrease in traffic on the Mediterranean-Vilaseca stretch due to road widening, part of the agreed AP-7 project; 4) the impact of the French and Spanish high-speed trains; 5) the lorry driver strikes in June 6) unfavourable weather conditions in May and June 2008, in contrast to the good weather of 1Q07; 7) the economic slowdown and increase in the oil price; and 8) the calendar effect (one less weekend in September). At the end of September 2008, transactions with cards + teletolls on toll roads in the Spanish network represented 72.4% of the total vs. 71.2% in 2007, and in teletoll systems 31.5% vs. 24.2%. Acesa and Aucat represented 36% and 35%, respectively. In the case of France, teletoll transactions stood at 32.2% (24.6% in 2007), while heavy vehicles now account for 67.2% vs. 15.8% in Spain. The toll road sector s revenue grew 0.5%, affected by negative traffic, which was in turn offset by toll revisions, discounts, improvements in the traffic mix and others, and the positive impact of 2008 being a leap year. In addition, it is important to note that in 2007 iberpistas included a capital gain of 6 Mn from the sale of Realia; stripping out this effect, the increase was +0.8%. ebitda fell 2.8% due to a 10% rise in expenses; this figure is not strictly comparable due to the impact on the consolidation scope of some Sanef subsidiaries with a smaller margin and lower growth (e.g. Masternaut, etc.) and lower volumes, already explained in detail in the report. ACESA AUCAT AUMAR IBERPISTAS AVASA CASTELLANA AULESA Total España 6,362 5,476 15, % 7.7% 24,292 36, % 32, % -8.6% 30, % 2.8% 27, % Total Sanef (Francia) 24, % Total abertis 26, % 13-2,400 7,600 17,600 27,600 37,600

14 4.1.1 Sanef Very favourable performance of the operating revenues, with growth of 4% due to higher toll revenues (+2.6%) and other non-toll revenues amounting to 92 Mn. Breakdown of growth: ADT dropped 1.1%; tariffs were on average 1.5% higher due to annual toll revisions, +0.3% due to 2008 being a leap year, +1.9% due to lower discounts for heavy goods vehicles, and optimisation between stretches and other income (+1.5%) not linked to toll roads (e.g. Telematica Masternaut). EBITDA grew at a lower rate than revenues due to the integration of Webraska (acquisition with effect from April 2007, different way of accounting for salary bonuses monthly and the impact of the growth of Masternaut, Eurotoll, etc., businesses with a lower margin acesa Negative traffic due to the poor weather conditions, affecting coastal routes, the economic downturn, which affects acesa s entire network with significant falls in traffic at weekends, the lorry drivers strike in June, which impacted heavy goods traffic, and the impact of the high-speed train on the Barcelona-Lleida stretch were the main causes. Revenues were down, in large measure because of deterioration in ADT (down 3.7%), which was partially offset by the annual tariff review (up 2.6%). 3Q 08 3Q 07 Chg. ADT 24,177 24, % ( Mn) Total revenues 1,049 1, % Operating expenses (366) (331) EBITDA % Margin 65.1% 67.1% Depreciation (211) (206) EBIT (1) % Margin 45.0% 46.7% Depreciation of revalued assets (74) (74) EBIT (2) % Margin 38.0% 39.4% Note: Contribution to group, including HIT, with consolidation adjustments at source EBIT: excludes depreciation of revalued assets (PPA Sanef) EBIT (2): includes all depreciation expenses acesa 3Q 08 3Q 07 Chg. ADT 36,710 38,136 (3.7%) ( Mn) Total revenues (1.6%) Operating expenses (103) (95) EBITDA (4.2%) Margin 78.6% 80.7% Depreciation (72) (76) EBIT (4.0%) Margin 63.7% 65.3% Note: Contribution to the group, with consolidation adjustments made at source aumar A toll revision (up +2.5%) and the leap year effect failed to offset falling volumes (down 8.6%), which were aggravated by the opening of alternative routes (fully explained in previous reports). Other factors included the negative effect of the lorry drivers' strike, the economic slowdown and adverse weather conditions in May and June, two of the busiest months of the year. Revenues and EBITDA dropped 5.7% and 8.1%, respectively. aumar 3Q 08 3Q 07 Chg. ADT 24,292 26,578 (8.6%) ( Mn) Total revenues (5.7%) Operating expenses (51) (48) EBITDA (8.1%) Margin 82.0% 84.2% Depreciation (46) (49) EBIT (8.4%) Margin 65.9% 67.9% Note: Contribution to the group, with consolidation adjustments made at source 14

15 4.1.4 aucat ADT has been affected by the sharp economic slowdown, which is prompting drivers to seek alternative routes, and the poor weather in May and June compared with the good conditions in 1Q07, which caused sharp falls in weekend traffic. The lorry drivers strike in June also had an adverse impact, while the Sitges- Casteldefells stretch was affected by the free rail service laid on until May; this served as an alternative to the C-32 on this stretch. Thus, despite a 3.24% increase in tolls and the leap year effect, both revenues and EBITDA fell iberpistas In volume terms (ADT), iberpistas was not immune to the sharp global slowdown unfolding in the infrastructure sector which, combined with the transport strike (which cut heavy goods vehicle traffic by 60.1% during the seven days of strike action in June) and the excellent weather conditions in 1H07, drove ADT 4.2% lower. It is worth highlighting that neither the revenue nor EBITDA figures are comparable year-onyear as the sale of Realia for 6 Mn was recognised in Like-for-like, i.e., stripping out this effect, revenue was flat while EBITDA climbed 1%. aucat 3Q 08 3Q 07 Chg. ADT 32,895 34,965 (5.9%) ( Mn) Total revenues (3.3%) Operating expenses (13) (12) EBITDA (5.8%) Margin 83.3% 85.6% Depreciation (11) (11) EBIT (7.2%) Margin 69.9% 72.9% Note: Contribution to the group, with consolidation adjustments made at source iberpistas 3Q 08 3Q 07 Chg. ADT 30,473 31,813 (4.2%) ( Mn) Total revenues (5.9%) Operating expenses (16) (16) EBITDA (6.2%) Margin 82.5% 82.8% Depreciation (12) (13) EBIT (5.1%) Margin 69.3% 68.7% Note: Contribution to the group, with consolidation adjustments made at source avasa (50% abertis) Good performance, maintaining in positive traffic volumes (+2.8% ADT) mainly due to the construction on the N232 which is driving traffic to the toll road (as explained) and the impact from Expo Zaragoza, especially in August. These factors have kept traffic levels buoyant and partially offset the slowdown in the global toll road sector. This positive performance, along with the tariff increase (+2.5%), underpinned a continued strong revenue performance (+4%). This, together with the containment of operating expenses, kept margins in check at a time when falling volumes makes this increasingly difficult. avasa 3Q 08 3Q 07 Chg. ADT 15,277 14, % ( Mn) Total revenues % Operating expenses (10) (10) EBITDA % Margin 83.0% 83.5% Depreciation (13) (13) EBIT % Margin 60.9% 60.7% Note: Contribution to the group, with consolidation adjustments made at source 15

16 4.1.7 GCO GCO s earnings were affected by exchange rates and higher personnel costs (due to the increase in the size of its workforce following union pressure). GCO contributes less than 1% of total revenues. Revenues in local currency rose 8% due to the strong performance of ADT (up +5.8%), because 2007 revenues included the negative impact of strikes by toll collectors, and tolls. EBITDA performed poorly due to higher personnel expenses, as explained in the first paragraph. GCO 3Q 08 3Q 07 Chg. ADT 69,844 65, % ( Mn) Total revenues (5.0%) Operating expenses (14) (12) EBITDA (28.2%) Margin 41.1% 54.3% Depreciation (4) (4) EBIT 6 10 (38.6%) Margin 24.3% 37.6% Note: Contribution to the group, with consolidation adjustments made at source Others Includes Castellana, abertis Chile, Aulesa and Trados 45. Very significant percentage increases (though still very low in absolute terms) in Aulesa s ADT thanks to the positive impact of the opening of the Ronda Sur de León in June Decrease in Trados 45 ADT because of the opening in June 2007 of the last stretch of the M50 (alternative route), with ADT settling slightly under the maximum collection threshold. Others 3Q 08 3Q 07 Chg. ADT Castellana 6,362 6,415 (0.8%) Aulesa 5,476 5, % Trados 45 59,147 74,794 (20.9%) ( Mn) Total revenues % Operating expenses (14) (11) EBITDA (7.5%) Margin 46.0% 54.8% Depreciation (17) (15) EBIT (4) (2) 114.0% Margin n.a n.a Note: Contribution to the group, with consolidation adjustments made at source Other holdings The following are details of the performance of other toll road operators in which abertis holds stakes. Among other toll roads in which abertis holds stakes, it is important to highlight the very positive performance of some of the toll roads such as Coviandes, Tunel de Cadi, Ausol and Autema. Fall in ADT on Madrid radial roads (R3-35 due to the impact of the AP-36 alternative route and the opening of the M50 junction) ADT 08/07 % abertis Kms 3Q2008 3Q2007 Chg. APR 75.0% 2 23,267 22, % Coviandes 40.0% 86 6,591 6,599 (0.1%) Túnel del Cadí 37.2% 30 6,781 6, % A. Madrid R3-R5 35.1% 61 14,039 14,917 (5.9%) Ausol 31.6% ,908 76, % RMG 33.3% 74 42,541 43,082 (1.3%) Autema 23.7% 48 23,495 23, % Henarsa R2 22.5% 62 10,688 10, % 16

17 4.2. Telecommunications Activity and results analysis Profit and Loss Account ( Mn) Activity and results analysis The operating revenues of the telecommunications business have evolved very favourably, rising 9% year-on-year in the first nine months. It is important to note that the consolidation method for proportionally consolidated companies at the unit changed on 1 July 2008 following the acquisition of Hispasat ( 12 Mn). On the negative side, it is worth noting that in January 2008, the Nexus network, which provided communication services to the Catalan police force, was deactivated. This decline, and the change in the way the service is provided, caused revenue to drop by 10 Mn in 9M08. Operating expenses, which are not strictly comparable, rose by 8% for three main reasons: o ( Mn) 3Q2008 3Q2007 Chg. Revenues % EBITDA % Margin 39.9% 39.6% 0.3 EBIT % Margin 20.6% 21.8% (1.2) p.p. Note: Contribution to the group, with consolidation adjustments made at source. Following the enactment of the new Price Transfer Law between companies belonging to the same group, explained in detail in previous reports, o 11% 15% with an impact of 7 Mn on expenses in 9M08. No impact on consolidated. As a consequence of the rollout of DTT and the switchover schedule by region, explained in previous reports. o And the impact of increased costs, particularly electricity supply and the effect of 2008 CPI on expenses, mainly personnel expenses, which cannot be offset until next year. Finally, there was a 13 Mn cost in 3Q07 from the negative impact of the Xfera guarantee, explained in detail in this report, which has been amply offset by the deactivation of Nexus (lower 2008 revenues) and the higher costs of the new Price Transfer Law ( 17 Mn in total). In light of all the above we consider EBITDA for this period comparable, even following the acquisition of Hispasat. EBITDA in the first nine months grew by a healthy 10.2% to 126 Mn, leading to an improvement of 30 basis points in our margins due to the inclusion in consolidated earnings of businesses with a higher margin. 8% Revenues distribution 5% 60% Audiovisual broadcasting Transport, housing and maintenance Mobile communication Occasional Other revenues Eutelsat and Hispasat Eutelsat contributed 36 Mn to abertis under the equity accounting method in 9M08. Eutelsat-Outlook : Revenues of 950Mn and ebitda margin in excess of 78%. Hispasat- 9M 2008 results: Revenues Mn (+8.3%), ebitda 84.0 Mn (+10.2%) and net profit 30.5 Mn (+53.3%) 17

18 4.3.- Airports Activity and results analysis Profit and Loss Account ( Mn) ( Mn) 3Q2008 3Q2007 Chg. Revenues (4.8%) EBITDA (0.2%) Margin 36% 34% 1.6 p.p. EBIT % Margin n.a. n.a. n.a. p.p. Note: Contribution to the group, with consolidation adjustments made at source Activity and earnings analysis Results are not strictly comparable, as explained in detail in the report, like for like revenues and ebitda (excluding DCA and exchange rate) grew 7.8% and 13.5% (11.5% and 13.5% in 1H08) respectively. The decline in revenues was due to a slowdown in business growth (passenger growth fell from +7.8% in June to +5.9% in September) and the decline in growth in revenues per passenger (from +3.9% in June to +2.4% in September). The lower ebitda growth was mainly due to the decline in revenues mentioned and the increase in the Luton concession fee (the increase in the concession fee per passenger for Luton rose by 37 pence (+19.2%) from July. This resulted in an additional 2.2 Mn cost which explains the 2.6% fall in ebitda from TBI A strong performance with a 5.9% increase in passengers, thanks mainly to: Stockholm (+33,2%), Orlando (+8.6%) and Luton (+4.6%). Revenue per passenger rose sharply at Luton (+9.3%), partly offsetting the increase in the concession fee. CODAD Positive performance in 9M08, with an increase of 9.0% in the number of flights. 8% 10% 8% TBI: no of passengers (000) 11% 18,211 3Q % 85, % +9.0% 41% 19,285 3Q2008 TBI passengers per airport 93,406 London Luton Belfast International Cardiff International Stockholm Skavsta Orlando Sandford Bolivian airports CODAD: no of flights (units) 3Q2007 3Q

19 4.4.- Car parks Activity and results analysis Profit and Loss Account ( Mn) Nº of spaces ( Mn) 3Q2008 3Q2007 Chg. +28% awared spaces Revenues % Revenues by veh. rotation % Revenues by holders % Others 9 10 (16%) EBITDA (9%) Margin 38.3% 42.9% (4.6) p.p. EBIT (19%) Margin 24.1% 30.3% (6.2) p.p. Note: Contribution to the group, with consolidation adjustments made at source. Activity and results analysis Earnings are not comparable, the car parks business increased revenues by 2% yoy, even though 2007 revenues included a 2 Mn capital gain from the sale of spaces. Stripping out this effect, revenues climbed +4.2%, due mainly to rising volumes, an 11.1% rise in subscribers and the performance of average prices. 12% 36% 89,264 3Q2007 4% 2% 1% +10% 98,340 3Q2008 Spaces by type 45% actual spaces Concession Management Metered under concession Metered under management Property Leased Negative EBITDA performance (down 9%) following a one-off capital gain in 2007 from the sale of spaces at Travessera and an 8-percent increase in operating expenses, mainly due to the consolidation scope, personnel costs (increase in workforce and agreed salary increases), repairs and maintenance and external services. Spain continues to be the country with the greatest weighting, with 52% of spaces. By number of spaces, Spain is the leader in growth in spaces, with 4,992 new spaces, followed by Chile (4,319). Conversely, the number of spaces in Italy and Morocco fell. Spaces by geographical market 17% 19% 8% 4% 52% Spain Italy Portugal Chile Morocco Overall, the number of parking spaces managed by abertis car parks will increase by 16,278, these spaces have already been awarded and are currently being built or prepared. 19

20 % occupancy of warehouses Logistics parks Activity and results analysis Profit and Loss Account ( Mn) nonoccupancy 10% ( Mn) 3Q2008 3Q2007 Chg. Revenues % EBITDA % Margin 62.4% 34.9% 27.5 p.p. EBIT % Margin 45.7% 13.3% 32.4 p.p. Note: Contribution to the group, with consolidation adjustments made at source. Activity and results analysis Results are not comparable due to the incorporation into the consolidation structure of the acquisition of logistics assets from Inmobiliaria Colonial at the end of 2007 and the sale of Port Aventura. Revenues rose 126% and EBITDA climbed 51%, stripping out the capital gain from the sale of Port Aventura. Like-for-like EBITDA rose 89%. In terms of the number of m 2 of warehouses and offices, it climbed significantly (+43.8%, an increase of +126,243 m 2 ) from 2007, mainly due to the incorporation of the logistics assets of Inmobiliaria Colonial. Average occupancy rose 112 basis points to 90.9% (from 79.6% in 2007) as Arasur and PLZF began to be occupied and the Colonial assets were 100% occupied when acquired. At the end of 3Q08, the percentage of total average occupation of warehouses stood at 90.4%, while that of offices was 95.0%, both up from 80% and 96%, respectively, in Zona Franca. Barcelona nonoccupancy 5% occupancy 90% % occupancy of offices occupancy 95% CIM Vallès. Barcelona 20

21 5. Analysis by geographical markets Spain still accounts for the bulk of the company's revenues, representing 52% of the total, followed by France (mainly Sanef) with 38% of revenues, the UK (mainly TBI) with 6% and other countries (mainly Latin America, Italy and Portugal) with 5%. The order is the same vis-à-vis the contribution to EBITDA, although the relative weights of Spain and France are higher as the company commands wider margins in these markets Revenues Highlights of revenue performance by country include: France posted very positive growth (+4.1%) thanks to toll rate increases (+3.4%), the impact of 2008 being a leap year (+0.3%) and other revenues (mainly Masternaut-Telematica). Spain, with a 1% increase, driven mainly by toll increases, a good showing by Telecom, the addition of logistics assets and the capital gain from the sale of Port Aventura, which offset falling traffic volumes on Spanish toll roads. ( Mn) 3Q2008 3Q2007 Chg. Revenues Spain 1,448 1,434 1% France 1,049 1,007 4% UK (7%) Others (1%) Total revenues 2,793 2,750 2% 5% others 6% UK revenues dropped 7%, primarily because of the exchange rate effect and reclassification of SFB Fuelling revenues in 2007, included in UK earnings in 9M07; stripping out these two effects, it grew 8.0%. 38% 52% EBITDA As for contributions to EBITDA, noteworthy were the strong performances in the UK, with a like-for-like increase of 4.0%, excluding the exchange rate impact, and France (+1%). It is important to highlight the positive likefor-like growth, excluding the exchange rate effect, in the UK. This is fuelled by the tight grip over costs at TBI and the improved tariffs obtained at two of the company s main airports (Luton and Belfast). This partly offsets the higher concession fee at Luton (already explained in the airports section of the report), which slowed revenue growth. ( Mn) 3Q2008 3Q2007 Chg. EBITDA Spain (1%) France % UK (11%) Others % Total EBITDA 1,770 1,782 (1%) 3% 3% others 39% 56% 21

22 6. Consolidated balance sheet Insignificant variations in the balance sheet from 31 December 2007, which already accounted for I. Colonial s logistics assets as property, plant and equipment and as assets available for sale the acquisition of an additional 4.6% of Brisa. Variations in the period are mainly due to the integration of DCA from 31 March for accounting purposes and the proportional integration of Hispasat from 30 June Asset Financial investments included the division of DCA into GAP and AMP (classified as equity-accounted stakes) and the shareholdings in Brisa and Atlantia valued at their fair value (as financial assets available for sale). Other current assets are abertis and Sanef cash ( 72 Mn and 306 Mn respectively) and abertis short-term financial investments ( 217 Mn) Liabilities Shareholder s equity fell mainly as a result of the negative impact of the acquisition of 1.5% of treasury stock, the negative impact of the change in the valuation of Brisa at market value, valuing Atlantia at market prices, and performance of the year s earnings net of dividend payouts. Loans and borrowings: loans and borrowings increased chiefly due to the debt from the acquisition of logistics assets, DCA, Hispasat and the purchase of treasury stock. 7. Debt structure and trends Assets ( Mn IFRS) 3Q2008 4Q2007 Chg ( Mn) Property, plant and equipment 9,888 9, Intangible assets 6,807 6, Investments & other fin. assets 3,250 3,279 (29) Non-current assets 19,946 19, Trade and other receivables Others Current assets 1,594 1, Total assets 21,539 20, Equity & Liabilities ( Mn IFRS) 3Q2008 4Q2007 Chg ( Mn) Share capital 2,011 1, Reserves 2,764 3,104 (340) Shareholder's equity 4,775 5,020 (244) Loans and borrowings 12,596 11, Other liabilities 1,677 1, Non-current liabilities 14,272 13, Loans and borrowings 1,152 1,230 (78) Trade and other payables 1,340 1, Current liabilities 2,492 2,510 (18) Total equity and liabilities 21,539 20, Variable 23% Debt structure Fix 77% 3Q2008 % o/total 4Q2007 % o/total Long-term 12,596 92% 11,643 91% Short-term 1,152 8% 1,230 9% Total Debt 13, % 12, % Average life (years) Financing instruments Commercial papers Long-term revolving 3% facilities 1% Others 1% Long-term loans 8% 3Q2008 % o/total 4Q2007 % o/total Secured debt 5,912 43% 5,230 41% Unsecured debt 7,836 57% 7,643 59% Total Debt 13, % 12, % Notes 34% Sanef long-term loans 29% Rating A- from S&P and A Fitch Syndicated loans 24% 22

23 8. Consolidated cash flow statement abertis in 2008 generated net cash flow (before investments and dividend payments) of 1,079 Mn, 2% more than in Free cash flow was a negative 294 Mn, mostly because of the acquisition of DCA ( 273 Mn), Hispasat ( 226 Mn) and the purchase of treasury stock for 200 Mn. 9. Investments Operational capex at the end of 9M08 amounted to Mn. The most significant investments in toll roads were at Sanef ( 90 Mn, for upgrading toll stations and diverse maintenance), and Acesa ( 17 Mn, adaptation of toll stations; in Telecoms ( 12 Mn, on efficiency improvements and replacements), airports ( 9 Mn on material maintenance at Luton, Belfast and Orlando), car parks ( 8 Mn) and Serviabertis ( 10 Mn on SAP technology integration at Aumar and abertis Telecom). Meanwhile, expansion capex amounted to 759 Mn, with highlights as follows: At the airports business, the acquisition of DCA ( 276 Mn). Toll roads business, highlights were the investments made by Sanef ( 50 Mn, new construction and lanes), Acesa ( 41 Mn in lane widening on the AP-7), Castellana ( 22 Mn, third lane on the Valle de los Caídos - San Rafael road), and others, mainly due to Autema s capital increase. At the telecoms division, mainly in the acquisition of 28.4% of Hispasat ( 226 Mn) and the rest for the purchase of 80% of Teledifusión Madrid ( 4 Mn) and the regional rollout of DTT ( 29 Mn). Car parks, where 19 Mn was invested in the acquisition of a car park in plaza de los Mostenses, and 12 Mn was used for expansion at Saba Italia. And logistics, which acquired Cais da Braciera in Portugal for 22 Mn. ( Mn) 3Q2008 3Q2007 Chg. 08/07 Chg. EBITDA 1,770 1,782 (12) (1%) Finance results (408) (399) (10) n.a. Income tax expense (228) (245) 17 n.a. Cash flow 1,134 1,139 (5) (0%) Adjust. non cash effect PPA & other (54.7) (61.5) 6.8 n.a. Net cash flow 1,079 1, % Operational capex (170) (158) (12) n.a. Dividends (175) (151) (24) n.a. Pagos a minoritarios (68) (42) (26) n.a. Expansion capex (759) (1,287) 528 n.a. Acquisition / Sale own shares (200) 0 (200) n.a. Free cash flow (294) (561) 294 n.a. 38% Operational capex by sector 5% 7% 2% 5% Holding 6% 6% 5% 16% 75% Expansion capex by sector 36% 23

24 Appendices Appendix I: Summary of significant events July 2008 Decathlon signs an agreement to rent a 30,000m2 warehouse at Seville's Zal-II. Sevisur Logística and Decathlon sign an agreement to build and let a "turnkey" warehouse with a surface area of m2 expandable by another m2 - and 500 m2 of offices, which is scheduled to become operational in July 2009 and whose cost totals 12Mn. New agreement with ACS for the purchase of the remainder of its stakes in two Chilean toll roads. On 24 April 2008 abertis reached agreement with the ACS Group to purchase, through its Spanish subsidiary INVIN, S.L., 49% of ACS interests in toll road concessionaires Autopista Central (48%) and Rutas del Pacífico (50%), both in Chile. The companies agreed on 30 June to complete the remaining 51% of the purchase: 2% of the additional 51% stake was acquired by abertis (totalling a 51% stake in INVIN, S.L.) and Santander Infrastructure Fund II, a Santander Group fund, which thereby lifts its stake to 49%. The transaction s total cost to abertis is 376Mn ( 362Mn equity and 14Mn assumed debt). Saba invests 1.15Mn to implement the Via-T payment system. The VIA-T payment system has been extended to 26 car parks, of which 17 are in the city of Barcelona, with 4 in Terrassa, 3 in Mataró and 2 in Sabadell. Use of the new system at these car parks currently accounts for just over 2.5% of total payments. Saba is awarded the management of four car parks in Portugal's Troya peninsula via its Portuguese subsidiary Spel. The car parks have a total of 852 spaces which the company will operate under a renewable 3 year lease agreement. Following the opening of these four car parks, saba now manages a total of 17,239 spaces in 24 car parks in Portugal in cities including Porto, Lisbon, Leiria, Viseu, Portimao and Matosinhos. August 2008 The Ministry of Public Works awards sea rescue service contract to abertis telecom. Under this 4-year contract, which is renewable for a further 4 years, abertis telecom will provide VHF, MF and HF band communication services for the Merchant Shipping Department, and will establish and maintain a Network of Coastal Stations and Maritime Radio Communication Centres. The contract is worth 42.5Mn Agreement between the Government and iberpistas for the construction of the third lane on the San Rafael-Villacastín stretch of the AP-6. iberpistas will build, maintain and operate a third lane on the 20 km San Rafael-Villacastín stretch; this project involves total investment of 72Mn to September 2008 Opening of the free-flow teletoll system on the M50 in Dublín. On 30 August, Bet Eire Flow, in which sanef owns an 80% stake, launched the free-flow teletoll system on the M50 in Dublín, the first in Europe. The objective of the 8-year, 113Mn operating contract with the 24