ceo's presentation abertis' shareholders general meeting 2014

Francisco ReynésCEO

Abertis todayMilestones 2013

Results 2013

Assessment2013

Outlook 2014 Conclusions

Reference shareholders: 57% !!

Free Float: 43% 90% Institutional

10% Retail

Capitalisation: ~€14 Bn

Employees: ~16 Bn

Shareholders: ~70 Bn

TOLL ROADS

Assets in 11 countries 8,300 kilometres 28 concessions

14,500 employees 90% income

TELECOMMUNICATIONS

Main Customers in 6 countries ~ 6,000 towers

7 satellites 1,500 employees

10% income

OverviewAbertis today Milestones 2013

Results 2013

Assessment2013

Outlook 2014

Conclusions

Autovias Centrovias Intervias Vianorte Litoral Sul Planalto Sul Fluminense Fernao Dias R.Bittencourt !

Sanef Sapn Eurotoll Alis Aliénor ITS !!!!!

Acesa Aucat Invicat Aumar Iberpistas Castellana Avasa Aulesa Túnels Autema !

Elqui Rutas A.del Sol Los Andes Libertadores Central !!!!!

RMG Dartford Mersey

Newport Sakonnet

PortMann Bridge

GCO Ausol !!!!!!!!!

Coviandes Bet’eire

TOLL ROADS

Metropistas APR !!!!!!!!!

Abertis today Milestones 2013

Results 2013

Assessment2013

Outlook 2014

Conclusions Overview

TELECOMMUNICATIONS

Terrestrial Retevisión Tradia Abertis Tower

Services:

Broadcasting Towering Smart Cities Radiocommunications

Satellite Hispasat

Services:

TV & radio broadcasting Digital TV IP Services Point-to-Point Networks


Results 2013

Assessment2013

Outlook 2014

Conclusions Overview


Results 2013

Assessment2013


Investments: ≈ €600 M • €4.1 Bn from 2011

Attractive reinvestment

has acquired a 16.4% stake in

gaining control of the company for

€172,500,000July 2013

12% Equity IRR

has acquired 4,227

towers for

€385,000,000August 2013

13% Equity IRR

Divestments Investments

has sold a 3% stake in

for

€182,000,0001T 2013

has sold its 90% stake in

for

€835,000,0002013

EV/EBITDA 2013E of 12,4x

Divestments 2013: ≈ €1 Bn• €4 Bn from 2011

Generating funds to reinvest

AcquisitionsAbertis today Milestones 2013

Results 2013

Assessment2013

Outlook 2014

Conclusions

Investments: ≈ €600 Mn • €4.1 Bn from 2011




€172,500,000July 2013

12% Equity IRR

has acquired 4,227

towers for

€385,000,000August 2013

13% Equity IRR

Divestments Investments

has sold a 3% stake in

for

€182,000,0001T 2013

has sold its 90% stake in

for

€835,000,0002013

EV/EBITDA 2013E of 12,4x

Divestments 2013: ≈ €1 Bn• €4 Bn from 2011

Generating funds to reinvest

AcquisitionsAbertis today Milestones 2013

Results 2013

Assessment2013

Outlook 2014

Conclusions

Hispasat: takeover

Acquisition of Telefónica and Yoigo towers

A growing neutral operator

+4,000 towers

Income 2014e: €200 M

7 satellites + 2 under construction

Investments: ≈ €600 M • €4.1 Bn from 2011




€172,500,000July 2013

12% Equity IRR

has acquired 4,227

towers for

€385,000,000August 2013

13% Equity IRR

Investments

Focus, internationalisation and industrial role


Results 2013

Assessment2013

Outlook 2014

Conclusions Acquisitions

Hispasat: takeover

Acquisition of Telefónica and Yoigo towers

A growing neutral operator

+4,000 towers

Income 2014e: €200 Mn

7 satellites + 2 under construction

Investments: ≈ €600 Mn • €4.1 Bn from 2011




€172,500,000July 2013

12% Equity IRR

has acquired 4,227

towers for

€385,000,000August 2013

13% Equity IRR

Investments

Focus, internationalisation and industrial role


Results 2013

Assessment2013

Outlook 2014

Conclusions Acquisitions

Technology and engineering

Managing concessional

contracts

Organisation and ICT

Benchmarking and cost management

Industrial role

DTLNewport

Port Mann Bridge

Mersey and DartfordRélance Plan

Unicat

Integration Efficiency plan

SAP


Results 2013

Assessment2013

Outlook 2014

Conclusions

Allows to consolidate the role of the Group


Results 2013

Assessment2013

Outlook 2014

Conclusions Industrial role

The management of talent, competitive advantage

Since 2011

90%Covered by internal promotions

Since 2012

75%Executives in development actions

x5Since 2010

Executive abroad

Senior Management


Results 2013

Assessment2013


-3.3% -3.8%

-1.2%

-3.3%-2.1%

0.3%1.6% 2.1%

1T12 2T12 3T12 4T12 1T13 2T13 3T13 4T13

5.2%

3.0%

6.1%5.5%

3.8%4.5% 4.0%

1T12 2T12 3T12 4T12 1T13 2T13 3T13 4T13

3.8%

8.8%7.3%

10.4%

6.4%8.2% 8.1

7.5%

1T12 2T12 3T12 4T12 1T13 2T13 3T13 4T13

7.4%

Activity

-9.1% -9.1%

-11.2%-12.2%

-8.4%-9.6%

-2.6%-0.8%

1T12 2T12 3T12 4T12 1T13 2T13 3T13 4T13

Toll fares: +2.9% Traffic: -5.2% Tolls fares: +1.9% Traffic: +0.6%

Tolls fares: +3.6% Traffic: +3.9% Tolls fares: +3.5% Traffic: +7.8%

Growth in telecommunications revenue: 3.6%

Average toll fares growth: 3.1%

Average traffic growth: 1.5%


Results 2013

Assessment2013

Outlook 2014

Conclusions

New investments

2012 gains

Extraordinary deductions 2012

4,143511

2,665258

P&L account

€ Mn

Income 4,654 +25%

Operating expenses -1,731 +28%

Gross Margin (EBITDA) 2.923 +24%

Depreciation -1,203 +31%

Operating margin (EBIT) 1,721 +19%

Financial result -729Equity-accounted income 37

Result before tax 1,029 -24%

Corporate tax -330Attributable to minority interests -130Discontinued operations 49

Net profit 617 -40%

Comparable net profit +7%

vs 2012

Substantial improvement in margin and growth in earnings

Global incorporation Brazil and Chile


Results 2013

Assessment2013

Outlook 2014

Conclusions

2012

Toll roads88%

Telecom8%

Airports4%

Spain52%

France 39%

Chile6%

Others3%

2013

Toll roads90%

Telecom10%

Spain44%

France33%

Chile8%

Others1%

Brazil14%

Greater business focus & internationalisation

EBITDA

+24%


Results 2013

Assessment2013

Outlook 2014

Conclusions

Increased cash flows, maintaining dividend policy and investment

2,923

Accounting EBITDA

729

Financial cost

330

Tax

246

Non cash-floweffects

764

Current Investments Dividends

547

Minoritaries

146

FreeCashflow

161

Generated funds (€Mn)Abertis today Milestones 2013

Results 2013

Assessment2013

Outlook 2014

Conclusions

Average cost: 5.1%

Average maturity: 5.5 años

Non-recourse: 62%

Fixed rate: 82%

Airports Eutelsat

Hispasat Towers

Net debt (€Mn)

14,130

Dec 2012 Free Cash Flow

Divestments

-161-1,017

Acquisitions

575

Exchange rate and other

-371

13,155

Dec 2013

Net

deb

t /

Ebitd

a

5.7x

4.5x

Reduction of net debt €1 Bn ~ (-7%) in a context of growth

Rating: S&P BBB, Fitch BBB+


Results 2013

Assessment2013

Outlook 2014

Conclusions

Financing needs are covered up to end of 2017

€1.5 Bn issued in bonds

Corporate Business

Financial strength (€Mn)

6,590

Available Lines

Corporate treasury

3,512

3,078

Debt maturity schedule

1,329 1,469

1,948 1,817

2,224

1,3661,207

1,927

435

2,615

6.563

Available liquidity


Results 2013

Assessment2013

Outlook 2014

Conclusions

A solid balance of more than €28 Bn

3,0781,671

23,385

6,590

5,311

16,233Gross financial debt

Assets Liabilities

Long-term assets

Current assets

Treasury

Net equity

Other creditors

Balance sheet (€Mn)

13,155 Net debt

14,000 Market value


Results 2013

Assessment2013

Outlook 2014

Conclusions


Results 2013

Assessment 2013


Integration

Efficiency

Optimising portfolio

Strengthening balance sheet

Objectives 2013

In 2013 our strategy is consolidated

VALUE CREATION

Sustainable dividends

Disciplined growth


Results 2013

Assessment2013

Outlook 2014

Conclusions

x2

Concessions Kilometres Employees

Revenue (€Mn) EBITDA (€Mn)

x2 x1,3

x1,2x1,3

Integration

Industrial role in businesses integration


Results 2013

Assessment2013

Outlook 2014

Conclusions

3,756

8,300

12,07315,934

3,7244,654

2,285 2,923

Initial objectives €Mn Current €Mn

2011 2012 2013 2014

65193

37 355

570101

163

230

456

733

Comparable progression, considering CPI and excluding programme costs.

Efficiency (€Mn)

Successful efficiency plan 2011-2014

Accumulated savings 2011-2014


Results 2013

Assessment2013

Outlook 2014

Conclusions

x1,2 x 0,9

Strengthening balance sheet (€Mn)

Improved key balance ratios

Assets Net debt Net Debt/EBITDA

6.0x4.5x


Results 2013

Assessment2013

Outlook 2014

Conclusions

23,83728,134

14,590 13,155

Accumulated cash flow applications 2011 - 2013

8,100

4,000

Financial charges

Sale of assets

Operations and efficiencies

Investments in growth

Organic investment

2,400

2,400

1,400

1,200

Reduction in net debt

700

4,100

Dividends

Taxes

Cash flow generation Cash flow application

Optimising the portfolio (€Mn)

Focus and internationalisation


Results 2013

Assessment2013

Outlook 2014

Conclusions

2009 2010 2011* 2012 2013

422443

512538

565

Ordinary dividends (€Mn)

Sustainable dividend

In the last five years €3.28 Bn have been distributed

* Additional Extraordinary Dividend ≈ €800 M

2009 2010 2011 2012 2013

422865

2,177

2,7153,280

Accumulated dividends accrued (€Mn)


Results 2013

Assessment2013

Outlook 2014

Conclusions

2009 2010 2011* 2012 2013

422443

512538

565

Ordinary dividends (€Mn)

Sustainable dividend

In the last five years €3.28 Bn have been distributed

* Additional Extraordinary Dividend ≈ €800 Mn

2009 2010 2011 2012 2013

422865

2,177

2,7153,280

Accumulated dividends accrued (€Mn)


Results 2013

Assessment2013

Outlook 2014

Conclusions

+77%

+7%

31.12.1260

80

100

120

140

160

180

Graph adjusted by extraordinary dividends and bonus share issue.

31.12.09 31.12.10 31.12.11 31.12.13

37% increase in share price in 2013

value creation

Difference Abertis Vs. IBEX 35

70%2009-2013

abertisIBEX 35


Results 2013

Assessment2013

Outlook 2014

Conclusions


Results 2013

Assessment2013

Outlook 2014

Conclusions

Golden rules

In order to continue creating value

Improved profitability in current perimetre

Forecast investments above €1.3 Bn in 2014 (35% in Spain)

Growth and progressive internationalisation with financial discipline

Consolidation of industrial role in the projects

Financial solidity: investment grade rating

Sustainability of dividends policy


Results 2013

Assessment2013

Outlook 2014

Conclusions

has acquired a 6% stake in


€32,200,000January 2014

Path to control

Recent takeover operations

has acquired a 9% stake in

gaining control of the companies for

€18,000,000February 2014


Results 2013

Assessment2013

Outlook 2014

Conclusions

Traffic

-5.6%

-9.1%

1T11 1T12 1T13 Jan-Feb 14

-8.4%

1.5%

ADT

1T10

-4.2%

+3.76%

-3.31%

1T11 1T12 1T13 Jan-Feb 14

-2.06%

3.4%

ADT

+1.22%

1T10

Encouraging two first months in Spain and France

Positive trend continues in Brazil (4%) and Chile (6%)


Results 2013

Assessment2013

Outlook 2014

Conclusions


Results 2013

Assessment2013


Conclusions

Achievements in 2013• Company has become more international, bigger and more efficient

• Balance has been strengthened• Positive developments in the share price

• Consolidation as world leader in toll roads


Results 2013

Assessment2013


Conclusions

Achievements in 2013• Company has become more international, bigger and more efficient

• Balance has been strengthened• Positive developments in the share price

• Consolidation as world leader in toll roads

Good outlook for 2014• More favourable macroeconomic environment

• Increasing impact of efficiencies• Solid liquidity for growth

• Maintaining dividend policy


Results 2013

Assessment2013


A committed team

Global Gathering ’13

Commitment and delivery

ceo's presentation abertis' shareholders general meeting 2014

Business

equity irrhas

stake ingaining control

towers for385

company for172

equity irrinvestmentsfocus

conclusions overviewabertis

growing neutral operator

m7 satellites