OVERVIEW PRESENTATION September 9M 2017 2016 RESULTS
Index 01 Who are
Who are Our story Abertis is the leading international group of toll-road operators. We manage thousands of kilometers of high quality, high capacity roads around the world. Our top priority is the safety of our drivers. We are continually investing in technology and smart engineering to make sure our customers have a smooth experience using our roads: safe, comfortable, fast and convenient. We have grown by being good partners to governments: we are committed to the long term, and we deliver a high quality product. Our profits come from operating the roads, not from speculating on public services. We take a hundred year view of our business. We bring together financial capability and industrial expertise: we have the capacity for large-scale financing, and we have the know-how to manage infrastructure. We want to be part of the solution to public problems associated with increasing road travel, such as congestion and climate change. As the global leader in our sector, we aim to set standards for the industry. Nobody is better placed than Abertis to set the pace on quality and innovation. 3
Who are We? Company Highlights The World Leader in Toll Roads Assets in 14 countries ~8,000 km under management 33 fully consolidated concessions Electronic Tolling Technology services worldwide 4 and a reference in the satellite industry Presence in Europe and Latin America 9 satellites 57% of Hispasat
Who are We? Company Highlights Financial Highlights EBITDA Composition (9M 2017) 2016 9M 2017 By Business By Market 4.9Bn Revenues 3.2Bn EBITDA 2.2Bn Discretionary FCF 4.2Bn Revenues 2.8Bn EBITDA 1.7Bn Discretionary FCF Hispasat 5.3% Brazil 12% Hispasat and Others 11% Spain 30% 2.6Bn Investments 14.4Bn Net Debt (4.4x EBITDA) BBB/BBB+ rating (S&P/Fitch) 3.2Bn Investments 15.4Bn Net Debt (4.3x EBITDA) BBB/BBB+ rating (S&P/Fitch) Autopistas 94.7% Chile 11% Italy 6% France 31% ~ 19Bn Market Cap A focused company with a geographic diversification A Rock-Solid Cash Cow Company 5
Index 01 Who are
Our Key Pillars Our road to value 2015-2017 Strategic Plan Efficiencies Focus Growth Shareholder remuneration Industrial Model to capture opex and capex savings Intensify sector focalization Current portfolio and M&A Growing and Sustainable Significant cash savings A pure toll road operator Contract Amendments Acquisitions with capital discipline 10% CAGR 2015-2017 7
Our Efficiencies Efficiency Plan I 2011-2014 Initial Target 570Mn cumulative cash savings Efficiency Plan II 2015-2017 Yearly cash savings 130Mn 2015E 2016E 2017E Final outcome 741Mn cumulative cash savings Significant cash efficiencies 2nd efficiency plan Liability management programs 8
Our Focus In 2011 Abertis initiated a strategic plan focused on toll roads 2010 Acquisitions Disposals (airports, car parks, logistics, non core stakes) towers 5 non-synergic business units Non-controlling stakes 47% of EBITDA outside Spain towers towers Puerto Rico towers 9M 2017 2 business units Controlling shareholder of the main operations ~70% of EBITDA outside Spain Latest developments towards becoming a pure toll road operator Cellnex IPO Value crystallization above expectations ~ 2.7Bn capital gains Airports full exit (MBJ: 177Mn) Attractive sale IRRs Acquisition of Autopista Central (Chile), A4 Holding (Italy), stake increases (Brazil, France and Italy), Indian acquisition, Rodovia dos Calçados ( Autovias retender ) Consolidating Our International Leadership in Toll Roads 9
Our Golden Rules For Any project Industrial Role Group s best practices Industrial fees to Abertis Core investments with professional minority investors Financial Discipline IRR 250-450 bps over Ke (risk-adjusted) Sustainable capital structures by project Sustainable dividend policy Strict Geographic Selection Countries with solid legal framework Political stability Mature and stable economy Financial Strength Corporate Investment Grade rating Non-recourse debt by project 10
Our Growth in Toll Roads Capex Commitment Arteris expansion capex 2016-YTD ~ 4,793Mn A4 expansion capex Tariff Increases Arteris additional capex Existing Asset Base New Capex New Plan Relance Growth Only toll roads Financial discipline Risk-adjusted returns Low Risk No competition Assets we know 2016-YTD ~ 1,147Mn New Assets Apply industrial know-how Export best practices Increase geographic diversification Minority Stakes Autopista Central, HIT, A4 Holding, Arteris buy-out Tender Bilateral A4 Holding Contract Extensions Plan Relance, Metropistas Indian toll roads, Rodovia dos Calçados ( Autovias retender ) ~ 5.9Bn Invested in Toll Roads (2016-YTD) 11
Our Growing with Partners Partners (current and former) Shared Projects GS Infrastructure Partners (GSIP) Infra. 12
Our Focus and Growth ~ 11Bn equity invested in growth since 2011 (M&A and expansion) 45% stake in Metropistas 2011 Saba spin-off 37.2% stake in Tunel del Cadi 6.7% stake in Atlantia 16.4% TowerCo of Hispasat (Italy) Acq. Of 35% of 1,000 OHL 35% Acq. In stages 6% stake in 42.3% towers Brasil + stake in 7.2% of of 4,227 Metropistas of Invin from OHL Tunels Hispasat towers from Telefónica Chile TEF/Yoigo 2012 2013 2014 16% 5% Cardiff 26% stake in TBI stake in Eutelsat Tender Airport stake in 5.8% Airports Eultelsat Overon stake in of 15% GAP Brisa airports stake 7% stake in Codad Eutelsat Luton Airport 3.2% Airport stake in Eutelsat 50% stake in Wind Autopista del telecom Sol & Los towers Libertadores (Italy) Minority Plan of 15% buyout Relance stake in of (2.5 yrs Tunels Arteris extension) 2015 74% MBJ 66% airport stake listing of (Jamaica) + Cellnex SCL (Chile) Entry in 10 yrs India extension (JEPL Metropistas and TTPL) 50% 51% remaining stake in stake in A4 Autopista Holding Central 2016 Sale of 20% stake of Abertis Chile New 100% Plan stake in Relance SANEF 83.6% Autovias stake in retender A4 Holding 2017 Investments Disposals Becoming A Pure Toll Road Operator 13 13
Our Shareholder Remuneration Mn 0.73 723 0.66 0.69 0.36 First Payment (Nov/16) 593 651 0.37 Final Payment (Apr/17) 2014 2015 2016 2014 2015 2016 Final 2016: Shareholders to decide cash or shares (from treasury @ 3% discount) Value Oriented Shareholder Remuneration 14
Index 01 Who are
Value 01 Who are Financial discipline IRR ~250-450 bps over Ke (risk-adjusted) Sustainable capital structures Realistic business plans Tangible results: Double-digit IRR s in recent deals (Autopista Central, Plan de Relance, Autovias retender) Projects lost for not meeting minimum hurdle rate (Chicago Skyway, Indiana Toll Road, QML) Value How We Do It Industrial Model Investments Relationship with grantors Appointment of key management Implementation of best practices Management and industrial fees Synergies and economies of scale Expansion of the current portfolio Debottlenecking Tariff increases/extensions Long term partnership Proven track record Significant cash savings Optimization of integrated assets: Arteris, Chilean assets, A4 Holding and Puerto Rico EBITDA backlog increase Extensions in Arteris State Concessions, French and Puerto Rico assets Tariffs increases in Arteris Federal roads and French assets Future traffic upsides with increased road capacity French Plan de Relance: 2.5 yrs average extensions Iberpistas, Acesa Paquet Vert: 1 yr Metropistas: 10 yrs extension Financial strength Investment grade Rating Optimization of capital structure Rating from Fitch (BBB+) and S&P (BBB) Adequate cash position and undrawn credit lines Long term and focus 16 Focus on toll roads: doing what we know best We take a hundred year view of our business Disposal of non core assets Significant investments despite current macroeconomic environment (Arteris capex and minorities buy-out) We don t look spot price
Value Our Business Model PREDICTABLE TOP LINE FOCUSING ON EFFICIENCIES Revenues Traffic 50 yrs of market trends knowledge and traffic studies know-how Opex and capex committee Industrial model Outsorcing with competition and electronic auctions Centralized Corporate services Synergies Opex & capex Tariffs Tariffs linked to inflation + spread to compensate investments and rebalance contracts PRESERVING INVESTMENT GRADE SHARING EXPERTISE Industrial Strategic partners Negotiation with grantors Institutional relations Partnerships Financials Capital Market access Liability management Strong cash position and approved credit lines Risk management and hedging 17
Value Financial Strength Net Debt EBITDA 4.3x 5.8x 4.4x 4.3x Liquidity 6.5Bn 2011 9M 2017 2.2 Bn consolidated cash 4.4Bn undrawn Group credit lines Net Debt (9M 2017) Total: ~ 15.4Bn at HoldCo: ~ 6.6Bn Investment Grade Rating S&P BBB Rating Fitch BBB+ Discretionary Free Cash Flow Yield ~11% 18 Discretionary Free Cash Flow: Post tax, finance and maintenance capex
Value Proportional EBITDA Replacement Bn ~ 4.1Bn of proportional EBITDA will expire together with concessions that will end until 2022 18.7 Since Jan/15 the company added another ~ 7.7Bn in proportional EBITDA that will be generated from investments until 2022 (More than full Replacement) 4.1 7.7 Investments will continue to generate proportional EBITDA after 2022 totaling ~ 18.7Bn The company maintains a tangible growth pipeline that could add even more proportional EBITDA Expiring up to 2022 New Investments up 2022 New Investments post 2022 Pipeline EBITDA Replacement Accomplished 19
Growth Cash Flow Sustainability Proportional Cash Flow Concession Expirations 2016 Europe: 70% LatAm: 30% RoW: nm 1.9x 2.4x 2022 Europe: 63% LatAm: 33% RoW: 4% 2026 Europe: 65% LatAm: 31% RoW: 4% FCF post-growth 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Discretionary CF Expansion Capex Discretionary Cash Flow: CF after taxes, interest expense, and operating capex Strong CF Profile Post-Growth 20
Value Portfolio Duration* 1,500MN Chile and EBITDA (%) 19 yrs -6 yrs +14 yrs France (34%) 2,300MN %) EBITDA 27 yrs India (1%) Puerto Rico (11%) Brazil (20%) Chile and others (7%) Chile Chile (15%) Puerto Rico (11%) (15%) Italy Brsil France (13%) (13%) Spain (2%) (52%) India (1%) Italy (8%) Spain (41%) France (37%) Spain (19%) 2011 Portfolio 2011 Duration Time Investments 2017 Portfolio 2017 Duration (postgrowth) *Based on Proportional EBITDA backlog. Building a Diversified and Perpetual Business 21
Value Examples Autopista Central A4 Holding Acquisition of Autopista Central (stake increase to 100% from 50%) 948 Mn equity (double-digit IRR) Full control and consolidation 217Mn in annual revenues and 172Mn in EBITDA Acquisition of 51.4% stake ( 589Mn deferred payment) One of the busiest toll roads in Italy 236 kilometers in operation A platform for growth Double-digit IRR RAB system with guaranteed returns 544n in annual revenues and 200Mn in EBITDA Arteris Buy-Out Shares acquired from the minority shareholders Controlling block increase to 85% from 69% Indirect control increase to 43% from 35% Arteris delisting from Bovespa Metropistas Implementation and operation of new tolling gantries Investments of $115Mn 10 year contract extension (from 2051 to 2061) Double-digit IRR Increase in DTL revenue shares Expansion of Existing Portfolio and Addition of New Markets 22
Value Latest developments Jadcherla Expressways and Trichy Tollway Two key corridors for the country 252 km in operation A market with significant growth potential 30Mn in annual revenues and 25Mn in EBITDA Sanef Group and A4 Holding (Minorities) 47.5% stake increase achieving 100% in France + 83.6% reached in A4 Holding Greater dividend stream from France and Italy Increasing the weight of developed markets Higher Net Income 2017E by lower minorities Rodovia dos Calçados (Autovias Retender) 720 km highway in the State of Sao Paulo 30-year concession expiring in 2047 Extending 4 years our Brazilian portfolio 15% nominal equity IRR ~ 135Mn in revenues and 85Mn EBITDA by 2019 Following the Same Growth Pattern than 2016 23
Value Discretionary Cash Flow & Upsides Efficiencies Traffic LM s Tax rates Indian asets A4 Holding New assets Capex compensation Upsides Upsides post 2016 Expansion program Capex compensations Autovias retender Traffic upsides De-risking Capex program approval 2016 Abertis Today Capex for years Resolution of legal cases New capex program 2016 2015 Recurrent Discretionary CF CF 2016 2017 Discretionary Discretionary CF CF Tariffs and extensions M&A Significant Value Potential There is Upside 24
Index 01 Who are 04 Annex
04 Annex Annex: Toll Roads Overview Europe Spain #1 Operator 1,559 Km Direct Management EBITDA 2016: 1.1Bn Stake: 100% France #3 Operator 1,761 Km Direct Management EBITDA 2016: 1.1Bn Stake: 100%
04 Annex Annex: Toll Roads Overview Brazil & Chile Brazil #1 Operator (in Km) 3,250Km Direct Management 9 concessions fully consolidated EBITDA 2016: 0.36Bn 51% of Participes en Brasil (82.3% of Arteris) Chile #1 Operator 771 Km Direct Management 6 concessions fully consolidated in 2016 EBITDA 2016: 0.35Bn Stake: 80%
04 Annex Annex: 9M 2017 Results Income Statement MN 2016 9M 2017 L-F-L (9M 2017 VS. 9M 2016) Revenues 4,936 4,186 +5.7% Operating Expenses -1,696-1,432 EBITDA Comparable EBITDA 3,240 2,983 2,754 2,598 +7.2% Depreciation Amortization of revalued assets (PPA) --915-379 -789-315 EBIT 1,946 1,650 +9.0% Cost of debt Other financial results Share of profit of associates -737 117-10 -521-9 15 Profit before taxes 1,316 1,135 Income tax Discontinued operations Minorities -3-30-30-304 0-16 -323 17-94 Net Profit 796 735 +20.0% 28
04 Annex Annex: 9M 2017 Results Cash Flow Statement CF ( MN) 2016 9M 2017 L-F-L (9M 2017 VS. 9M 2016) EBITDA 3,240 2,754 +7.2% Financial Result Income tax expense Adjust. Non cash effects -620-304 -10-530 -323-135 Gross operating cash flow 2,306 1,767 Operating capex -92-56 Discretionary cash flow 2,214 1,711 +12.8% Dividends Payments to minorities -639-126 -294-39 Free cash flow II 1,449 1,378 Expansion capex organic -1,020-596 Net Free cash flow 430 782 29
04 Annex Annex: 9M 2017 Results Balance Sheet BALANCE ( MN) 2016 9M 2017 CHG Non-current assets 26,788 25,988-3.0% Current assets 4,348 3,546-18.4% Assets held for sale 50 11 Total assets 31,186 29,545-5.3% Shareholder s equity 6,901 4,830-30.0% Non-current liabilities 20,558 21,942 +6.7% Current liabilities 3,683 3,217-12.7% Liabilities held for sale 44 6 Total equity and liabilities 31,186 29,545-5.3% 30
04 Annex Annex: 9M 2017 Results Traffic in Our Major Markets -2.3% -1.8% -13.8% +1.4% +1.0% +2.8% +3.8% +3.4% +4.2% +4.7% +1.5% -2.0% -2.3% +1.7% +4.2% +3.0% +3.8% +2.4% +6.9% +6.0% +0.3% Traffic Performance Higher than Initially Expected 31
04 Annex Annex: 9M 2017 Results Cash Flow & Net Debt Discretionary Cash Flow ( Mn) 2,754-530 -323-135 -56 1,711-596 -294-39 782 EBITDA Net Financial Result Income tax Non cash effects Operating capex Discrecionary free cash flow Expansion capex Dividends Minorities Net CF Net Debt ( Mn) 2,528 15,425 14,377-782 -321 ND/EBITDA 4.7x -101-124 -151 4.3x ND/EBITDA Net Debt 2016 Net CF Cellnex IPO taxes return Deferred payment from ADIA Disposal Infracom (cash-in and Debt desconsolidation) Fx and others M&A Investment (France, Italy, India) Net Debt 9M 2017
04 Annex Annex: 9M 2017 Results Geographic Debt Distribution These figures do not take into account the assignment for the intercompany debt 33
04 Annex Annex: 9M 2017 Results Debt Profile Mn 5,124 2,655 1,706 1,276 2,091 2,189 1,295 1,285 348 2017 2018 2019 2020 2021 2022 2023 2024 2025+ Corporate debt Subsidiaries debt Mn 2016 9M 2017 Gross Debt 16,906 17,599 Net Debt 14,377 15,425 Net Debt/EBITDA 4.4x 4.3x Cash Consolidated 2,529 2,174 Mn 2016 9M 2017 Avg. Cost 4.8% 4.1% Avg. Maturity 5.9 5.3 Non-recourse Debt 66% 60% Fixed Rates 90% 79% 34
04 Annex Annex Shareholder Structure Shareholder base Structure at Jan 15 Current Structure* Criteria Caixa (23.1%) Criteria Caixa (22.3%) Abertis Board of Directors is formed by 15 directors, 9 of which are independent. - Independent directors are now a majority in the Abertis Board Free Float (42.4%) Grupo Villar Mir (18.9%) Treasury 8.0% Since 2009, Board members ha been cut from 21 to 15 while the proportion of independent directors has grown from 20% to 60% CVC (15.6%) Total free Float (77.7%) Free float has increased from 42.4% to 77.7% Towards the Best in Class Corporate Governance 35 *Estimated as of 30 September 2017