a
commitment and delivery
Abertis Overview Presentation
February 2016
a
1. Who are we?
2. How did we get there?
3. Adapting the Company
4. The Opportunity
5. Conclusion
6. Annexes
a 3
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes Who are we?
World leader in Toll Roads
• 7,600 km under management
• 30 concessions fully consolidated
• Leader in Brownfield projects
The World’s Most Diversified Operator
• 12 countries
• 65% of EBITDA generated outside of Spain
The World’s leading Infrastructure Company
a 4
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes Who are we?
4
Strong results and Cash Flow
• €4.4Bn of Revenues in 2015 (+5% L-f-L)
• €2.7Bn of EBITDA in 2015 (+5% L-f-L)
• €3.2Bn of Discretionary FCF in 2015 (+8% L-f-L)
Solid Balance Sheet
• €26Bn Assets under management
• €2.2Bn Cash and equivalents
• €12.6Bn Net Debt (4.7X EBITDA)
• BBB/BBB+ Rating (S&P/Fitch)
€12 Bn Market Cap
A Rock-Solid Company
a 5
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes Who are we?
EBITDA Composition 2015
A focused company with a geographical diversification
By Business By Market
Toll Roads 94%
Hispasat 6%
Spain 34%
France 38%
Brazil 13%
Chile 6%
Telecom and Others
9%
a 6
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes Who are we?
Our Toll Roads Universe
a
1. Who are we?
2. How did we get there?
3. Adapting the Company
4. The Opportunity
5. Conclusion
6. Annexes
a 8
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes How did we get there?
8
Puerto Rico
GROWTH 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
FOCUS 2011-2015
INVESTMENTS
Mid-teens blended equity IRR
shows clear investing discipline
towers
DISPOSALS
towers
towers
towers
a
1. Who are we?
2. How did we get there?
3. Adapting the Company
4. The Opportunity
5. Conclusion
6. Annexes
a 10
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes
Since 2007 financial crisis deteriorated heavily macro environment
From 2011 to 2014 Traffic declined in Spain ~20%
Abertis developed its acitivties in 5 different sectors
In 2010 Abertis held ~€2.5Bn in non-controlling investments
Adapting the Company
10
In 2011 we initiated a strategic plan focused on
increasing value creation
Adapting the Company
Strategic Plan 2011-2014
a 11
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes Adapting the Company
Strategic Plan 2011-2014
January 2011
Focus
Airports, Car Parks, Logistics,
Atlantia, Brisa, Eutelsat
€4.6Bn Disposals
a 12
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes Adapting the Company
Strategic Plan 2011-2014
Cumulative Efficiencies
Exceeds Initial Plan
€741Mn
January 2011
a 13
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes Adapting the Company
Strategic Plan 2011-2014
January 2011
Growth
Geographical diversification
Brazil, Chile, Puerto Rico, Towers, Hispasat
€4.5Bn Acquisitions
a 14
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes Adapting the Company
Strategic Plan 2011-2014
January 2011
Cumulative 2011-2014
€3.0Bn
Shareholder Remuneration
a 15
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes
Toll Roads 86% Toll Roads
89%
Adapting the Company
Increased focus and diversification
2010 2014 EBITDA
Spain 41%
France 33%
Brazil 17%
Chile 5%
Other 4%
Spain 53%
France 37%
Chile 5%
Other 5%
€2,494Mn
€2,494Mn €3,122Mn
€3,122Mn
Significant growth despite weak traffic
(~20% Traffic decline in Spain)
a 16
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes Adapting the company
Cash Flow Allocation
Total cash flow applications 2011 –2014
(€Bn)
Asset disposals
Cash from
operations
M&A investments (*)
Organic investment (*)
Net debt reduction
Dividends
Financial expenses
and taxes
10.1
3.5
4.6
3.0
0.9
2.8
4.5
Cash Inflows Cash Outflows
Abertis has effectively managed €15Bn
(Equivalent to reinvest its full market cap)
(*) Organic investment includes operating and expansion capex
(*) M&A does not include agreement to acquire 42.3% stake in Invin, as it is payable in 2019.
a 17
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes Adapting the Company
Shareholder Remuneration
* €1.07 per share additional extraordinary dividend paid in 2011
Clear and sustainable shareholder remuneration policy
0.56
0.60
0.66
358 402
422
443
512
538 565
593
Evolution of Ordinary Dividends (€ Mn) Evolution of Ordinary Dividends (DPS)
* 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 2014
a
1. Who are we?
2. How did we get there?
3. Adapting the Company
4. The Opportunity
5. Conclusion
6. Annexes
a 19
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes The Opportunity
Strategic Plan 2015-2017
Management Organization LTIP
FO
CU
S
EF
FIC
IEN
CIE
S
GR
OW
TH
SH
AR
EH
OL
DE
R
RE
MU
NE
RA
TIO
N
VALUE CREATION
a 20
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes 2015-17 Strategic Plan
Value crystallized
€2.2Bn
€3.2Bn
€3.5Bn
Consensus (Strategic Plan 30 Oct 2014)
IPO (7 May 2015)
Market Value (Today)
Exit from airports completed (MBJ: €177 Mn)
Equity value evolution since Cellnex’s IPO announcement
66% sold
€0.7/sh
34% at
Market price
€0.5/sh
+
€1.2/share value crystallized since announcement of Cellnex’s IPO
a 21
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes
Yearly cash savings
€210Mn
2015-17 Strategic Plan
Efficiency Plan
65 193
355
570
37
101
162
2011 2012 2013 2014
Initial Target €Mn Current €Mn
Main focus on:
France Brazil
New Initiatives on:
Spain
2011-14 Efficiency Plan
Discretionary Cash Flow Yield +350 bps
EBITDA Margin +340 bps
2015E 2016E 2017E
España
Discretionary Free Cash Flow: Post tax, finance and maintenance capex
2015-17 Target Efficiency Plan
Target up to €450Mn
accumulated 2015-17 Efficiency Plan
~€1.4Bn additional value
a 22
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes
A promising pipeline for growth
2015-17 Strategic Plan
Growth
France Plan Relance
Brazil Minorities’ Buy-out
Brazilian Infrastructure Plan
Chile Capex for years
Minorities’ Buy-out (Sol , Libertadores, Autopista Central)
Spain Túnels
Puerto Rico Capex for years
• Western Europe
• Italy (A4 exclusivity agreement)
• 2 Projects under study
• Americas
• 3 projects under study
Existing Assets
(High cash flow visibility) M&A Pipeline
Potential new capex on existing asset
base: ~€2bn (visibility within the next 2
years)
a 23
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes 2015-17 Strategic Plan
Growth
Appointment of key management
Group’s best practices
implementation
Management and Industrial fees
Industrial
Role
IRR 250-450 bps over Ke (risk-
adjusted)
Sustainable capital structures
Do not chase IRR
Financial
Discipline
Sustainability dividend policy
5% annual increase until 2017
Bonus share issue (1x20)
Dividends
Investment grade Rating
Optimize capital structure
Non-recourse debt
Financial
Strength
The Golden Rules for growth
Disciplined growth is the best approach to create value
a 24
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes 2015-17 Strategic Plan Shareholder Remuneration
0.69
0.73 0.76
Share Buy-Back
Tender offer achieved to buy 6.5% capital @ €15.70/sh
8.25% treasury stock (Post-Tender Offer)
Dividends
€2.1Bn dividend in 2015-2017 (10% CAGR)
€Mn DPS
Value oriented Shareholder Remuneration policy: IRR & Yield
a 25
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes 2015-17 Strategic Plan A promising traffic
YTD marks the best traffic performance since 2001 in Spain
-6.5%
-10.4%
-5.2%
2.0% 6.1%
2011 2012 2013 2014 2015
1.2%
-2.9%
0.6%
2.4% 1.8%
2011 2012 2013 2014 2015
5.0%
3.9%
3.1%
-2.3%
2012 2013 2014 2015
8.7% 8.1%
4.8%
8.5%
2012 2013 2014 2015
a 26
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes 2015-17 Strategic Plan 2015 Results Highlights
Robust recurrent business performance and B/S derisking
Strong traffic performance
5% L-f-L EBITDA growth
Discretionary Free Cash Flow of €3,162Mn
Cellnex IPO – Significant capital gains (around €2.7Bn)
Overall provisions
Significant net profit: €1,880Mn (+7% L-f-L)
P&L
Expansion of current asset base (Chile, Tunnels of Barcelona, Arteris)
Contract Amendments (Plan de Relance, Brazil Federal Roads)
Investments of €811Mn in existing asset base (higher future revenues)
Conservative B/S derisking (AP7 traffic, Autema,Radiales)
Balance
Sheet
a 27
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes 2015-17 Strategic Plan
Robust key financials
2011 2015
Net Debt
EBITDA
4.7x 4.4x
4.7x
5.8x
Liquidity
€5.8Bn
• €2.2Bn consolidated cash
• €3.5Bn undrawn Group credit lines
S&P Rating changed to
Positive Outlook
• Rating S&P BBB (Positive outlook)
• Rating Fitch BBB+ (Stable outlook)
Net Debt at HoldCo:
~€3,700Mn
Financial Stakes:
34% Cellnex = ~€1.100Mn (Market value)
Toll Roads assets: (annual basis)
Spain Toll Roads = ~€450Mn p.a. Annual Discretionary CF
Other Toll Roads = ~€110Mn p.a. Dividends received in 2014 (Brazil & Chile is not
paying dividends yet)
Discretionary Free Cash Flow: Post tax, finance and maintenance capex
Discretionary Free Cash Flow yield ~12%
a
1. Who are we?
2. How did we get there?
3. Adapting the Company
4. The Opportunity
5. Conclusion
6. Annexes
a 29
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes
Strong Traffic with increasing revenues in most markets
Operational excellence leads to higher Cash Flow increasing our
Firepower and Deleveraging to deploy on a Promising M&A
Pipeline
Delivery of the Strategic Plan Crystallizes Value, produces Record
Results
Share Buy-back program through Tender offer increasing treasury
stock to 8.25% of share capital
Company’s Prudence and Conviction on outstanding issues
On the right track to Deliver our Commitments
29
Conclusions
a
1. Who are we?
2. How did we get there?
3. Adapting the Company
4. The Opportunity
5. Conclusion
6. Annexes
a 31
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes Annexes
Annex 1: Debt Distribution
Spain France
• Net Debt: €5.376
• Net Debt/EBITDA: 5.2x
• Cash: €229
• Avg. Cost: 4.3%
• Avg. Maturity: 6.1
• Net Debt: €4,580
• Net Debt/EBITDA: 4.5x
• Cash: €1,475
• Avg. Cost: 3.8%
• Avg. Maturity: 5.7
Brazil RoW
• Net Debt: €808
• Net Debt/EBITDA: 5.7x
• Cash: €38
• Avg. Cost: 6.1%
• Avg. Maturity: 12.5
• Net Debt: €1,305
• Net Debt/EBITDA: 3.8x
• Cash:€114
• Avg. Cost: 12.4%
• Avg. Maturity: 3.6
Chile
• Net Debt: €498
• Net Debt/EBITDA: 2.9x
• Cash: €353
• Avg. Cost: 4.4%
• Avg. Maturity: 5.6
a 32
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes
Annexes
Annex 2: Current Shareholder Composition
(As of 10 February)
6.5% Share Buy-Back included in treasury
Criteria Caixa, S.A.U
(22.7%)
Grupo Villar Mir
(16.1%)
Total Free Float (61.2%)
Blackrock Inc (3.0%) Free Float - Other
(52.1%)
Capital Group (3.1%)
Lazard Asset Management (3.0%)
a 33
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes
Spain • #1 Operator
• 1,559 Km Direct Management
• Average Maturity: 2024
• EBITDA 2015: €1Bn
• Stake: 100%
France • #3 Operator
• 1,761 Km Direct Management
• Average Maturity: 2032
• EBITDA 2014: €1Bn
• Stake: 52.5%
Annexes
Annex 3: Toll Roads Overview (Europe)
a 34
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes
Brazil • #1 Operator (in Km)
• 3,250Km Direct Management
• 9 concessions fully consolidated
• EBITDA 2015: €0.35Bn
51% of Participes en Brasil (69% of Arteris)
Chile • #1 Operator
• 771 Km Direct Management
• 6 concessions fully consolidated in 2016
• Average Maturity: 2027
• EBITDA 2014: €0.2Bn
• Stake: 100%
Annexes
Annex 4: Toll Roads Overview (Brazil and Chile)
a 35
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes Annexes
Annex 5: Income Statement
35
€ MN 2015 2014 CHG
Revenues 4,378 4,453 -1.7%
Personnel expenses
Manageable operating expenses
Non-manageable operating expenses
-681
-358
-648
-574
-385
-584
18.5%
-7%
+10.8%
EBITDA 2,692 2,909 -7.5%
Depreciation -2,757 -1,163
EBIT -65 1,746 -103.7%
Financial Result
Share of profit of associates
-1,116
-41
-726
21
Profit before taxes -1,221 1,042
Income tax
Minorities
Discontinued operations
2
378
2,721
-356
-150
119
Net Profit 1,880 655 +187%
a 36
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes Annexes
Annex 6: Cash Flow Statement
36
CF (€ MN) 2015 2014 CHG
EBITDA 2,692 2,909 -7%
Financial Result
Income tax expense
Adjust. Non cash effects
-1,116
2
1,679
-726
-356
-110
Gross operating cash flow 3,257 1,717 +90%
Operating capex -95 -125
Discretionary cash flow 3,162 1,592 +99%
Dividends
Payments to minorities
-579
-120
-577
-155
Free cash flow II 2,463 860
Expansion capex – organic -811 -812
Net Free cash flow 1,652 47
a 37
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes Annexes
Annex 7: Balance Sheet
37
BALANCE (€ MN) 2015 2014 CHG
Non-current assets 22,114 23.777 -7.0%
Current assets 3,625 3.647 -0.6%
Assets held for sale 0 316
Total assets 25,739 27,470 -7.2%
Shareholder’s equity 5,349 5,993 -10.7%
Non-current liabilities 17,253 18,552 -7.0%
Current liabilities 3,137 3,079 1.9%
Liabilities held for sale 0 116
Total equity and liabilities 25,739 27,740 -7.2%
a 38
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes Annexes
Additional Information
Additional detailed information is available through
excel sheets and pdf documents at:
http://www.abertis.com/en/investors-relations/financial-information/quarterly-results
a 39
Who we are
How did we
get there?
Adapting
the company
The
Opportunity Conclusion Annexes Annexes
Contact Details
Paseo de la Castellana, 39
28046 Madrid (España)
Tel: +34 91 595 10 00
Tel: +34 91 595 10 20
Abertis website:
www.abertis.com
a
Commitment and Delivery