Results 9M 2015 - Abertis · 9M 2015 Results. 28 October 2015 5 Activity • Abertis Toll Roads activity measured by the average daily traffic (ADT) posted a positive evolution of

Results 9M 2015. 28 October 2015

Results

9M 2015 28 October 2015

9M 2015 Results. 28 October 2015 2

Contents

1. Executive Summary .................................................................. 3

2. Activity .................................................................................... 5

3. Income Statement .................................................................... 6

4. Toll Roads ................................................................................ 8

5. Toll Roads Spain ....................................................................... 9

6. Toll Roads France ..................................................................... 11

7. Toll Roads Brazil ...................................................................... 12

8. Toll Roads Chile ....................................................................... 14

9. Hispasat ................................................................................. 16

10. Cash Flow ............................................................................... 17

11. Capex ..................................................................................... 17

12. Balance Sheet ......................................................................... 18

Annexes

13. Annex I: P&L, Balance Sheet & Cash Flow ................................... 20

14. Annex II: Summary of Relevant Facts ........................................ 22

15. Annex III: Contact Details ......................................................... 23

16. Annex IV: Disclaimer ................................................................ 24


Executive Summary

9M 2015 Chg

Total ADT 22,101 +1.8%

ADT Spain 19,929 +5.9%

ADT France 24,380 +2.1%

ADT Brazil 18,077 -1.3%

ADT Chile 19,007 +8.3%

€ Mn 9M 2015 Chg

Revenues 3,328 -1.1%

EBITDA 2,129 -5.9%

EBIT -357 -125.6%

Net profit 1,797 +226.2%

Net debt (*) 10,767 -21.9%

Discretionary cash flow 3,396 +160.3%

Free cash flow 2,474 n.a.

(*) % change vs closing prior year

• Abertis 9M 2015 results reflect the company´s commitment towards its 2015-2017 strategic

plan.

• Net profit stood at €1,797Mn, a historical level (+226.2%) boosted by the results of the Cellnex

IPO. The company EBITDA on a comparable basis posted a growth of 5% totaling €2,152Mn

YTD.

• Good traffic trends and tariff increases led to an increase of 5.2% in comparable revenues to

€3,328Mn YTD. Consolidated total traffic increased by 1.8%, with Spain (+5.9%), Chile

(+8.3%) and France (+2.1%), offsetting the performance in Brazil (-1.3%).

• The recurrent EBITDA growth together with the proceeds from the disposal of non-core assets

allowed the company´s Discretionary Free Cash Flow (before dividends and expansion capex)

to reach €3,396Mn. Net debt declined €3,023Mn (-22% from FY14) to €10,767Mn and the

leverage declined to 3.7x Net Debt/EBITDA.

• The Discretionary Free Cash Flow was more than enough to sustain the relevant investment plan

being executed by the company to improve the infrastructure of its assets (€529Mn expansion

capex YTD) especially at Arteris which accounted for 52.6% of this total amount − a sign of the

confidence of Abertis in the long term perspectives for Brazil. Also the sustainable cash flow

generation allows the company to deliver one of its key strategic pillars: shareholders

remuneration.

• On November 3rd the company will distribute €0.33 dividends as part of the 2015 total

dividends. In addition the Company successfully concluded in October a Public Tender

Offer addressed to all the shareholders and acquired 6.5% of its share capital at

€15.70/share. After this operation the treasury stocks that the company holds represents 8.25%

of its share capital. The company will not cancel the shares acquired in the Offer during the two

years following the settlement of the Offer, and it intends to use such shares to perform potential

corporate transactions or to increase the shareholders remuneration.


• For a better analysis of the 9M15 results on an comparable basis it is important to take in

consideration certain events with non-recurrent impacts such as:

- The €260Mn net provision on Arteris taking into account the macroeconomic environment in

Brazil and the ongoing Public Tender Offer for the totality of Arteris shares at R$10.15 per

share;

- Changes in the perimeter scope: the stock market listing of a 66% stake in Cellnex

took place during the month of May (thus Abertis lost majority control of the asset). As a

consequence, the results of Cellnex (and the net book gains) have been classified as “Discontinued

Operations” until the IPO date, and as equity accounted thereafter;

- Changes in accounting standards which require the recognition of the impact of certain

annual fees the moment they are incurred vs. the yearly accruing methodology previously used

(IFRIC 21). This accounting change applies primarily to Spain and France and has no impact on

the annual accounts, although it does on the interim accounts;

- The AP-7 Agreement: Following a prudent accounting approach the Company has fully

provisioned the traffic guarantee of the AP-7. In any case, and regardless of the registered

provision, Abertis continues maintaining the sound legal arguments regarding the legal validity of

the Agreement and will defend them in the Courts of Law;

- €73Mn impairment on Autema following the unilateral approval of a Decree by the regional

government of Catalonia which modifies the concession terms and generate a significant decline in

revenues;

- During H1 2015, the Company has received an executive court order in favor of some financial

debtors from Alazor, and in which it demands payment of the amounts in dispute, which have

already been deposited and provisioned by Abertis. However, and in parallel to the appeal process

pursued by Abertis, the Company has decided to provision €117Mn to cover the potential risk

that the remaining financial debtors will file lawsuits requesting payment;

- In France, Abertis negotiated and included amendments to its Sanef and SAPN concessions

contracts to be part of the so called Plan de Relance, an infrastructure plan designed by the

French government to foster its economy. The agreement signed by Abertis consists of

investments amounting €590Mn in exchange for an average 2.5 years extension of its

concessions. Considering these new maturities, as of July, the respective amortizations are

recalculated;

• The 2014 Profit & Loss and Cash Flow Statements have been restated following the 2015

accounting criteria in order to facilitate comparisons.

Note: The financials included by Abertis from Participes in Brazil, Arteris, and its group in this closing do

not necessarily match those to be reported by Arteris, as the scope is not exactly the same, the IFRS rules

in Brazil show small differences with Abertis’ IFRS criteria and, most importantly, Abertis includes below

EBITDA a number of financial impacts as well as impacts from the amortization of revalued assets

associated with the transaction (PPA).

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Activity

• Abertis Toll Roads activity measured by the average daily traffic (ADT) posted a positive

evolution of 1.8% YTD with solid growth in all the markets where the Company operates with

the exception of Brazil currently facing a continued economic downturn.

• In Spain, traffic growth (+5.9%) was primarily supported by the economic recovery that has

been benefiting the country. This has led to light vehicle growth of 5.3% and heavy vehicle growth

of 9.2%, the strongest performance since 2001.

• ADT for the French roads was 2.1% higher than the same period in 2014. Together with a

favorable economic environment the growth can be explained by the lower fuel prices and

calendar effects. The figures could even be higher if not for better weather conditions in 2014 and

for the reopening at the end of August 2014 of the Mathilde Bridge as an alternative route for

SAPN users.

• On the other hand, the slowdown of the Brazilian GDP, and in particular in industrial

production, has led to a 1.3% drop in ADT YTD. The current economic scenario has more than a

proportional effect on the heavy vehicles performance (-7.9%) due to the nature of the Brazilian

traffic mix and the country infrastructure model based mainly in motorways. On top of that, during

February a nationwide truck drivers strike impacted traffic. ADT for light vehicles which is more

correlated to unemployment rates and the household income grew at +2.3%.

• Despite the country´s earthquake in the month of September and a moderate economic evolution,

Abertis Chile posted the best performance in terms of ADT among the group concessions

(+8.3%) especially for light vehicles (+9.5%) which have benefitted from this year´s positive

weather conditions and special events such as the Copa America´s football tournament.

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9M 2015 Chg Chg LV Chg HV

Toll roads: ADT

Total Spain 19,929 +5.9% +5.3% +9.2%

Total France 24,380 +2.1% +2.2% +1.5%

Total Brazil 18,077 -1.3% +2.3% -7.9%

Total Chile 19,007 +8.3% +9.5% +3.2%

Total Abertis 22,101 +1.8% +3.3% -3.7%




Income Statement

Revenues EBITDA


€ Mn 9M 2015 Chg

TOTAL REVENUES 3,328 -1.1%

Operating expenses -1,199 8.8%

EBITDA 2,129 -5.9%

Depreciation -2,486 185.4%

EBIT -357 nm

Other financial results -335 ,

Cost of debt -554

Share of profits of associates -52

PROFIT BEFORE TAX -1,298 -247.4%

Income tax expense -2

PROFIT FOR THE PERIOD -1,300 -317.4%

Discontinued operations 2,721

Attributable to minority interests 376

NET PROFIT 1,797 226.2%

Spain

31%

France

37%

Brazil

18%

Chile

5%

Others

9%

Spain

35%

France

37%

Brazil

17%

Chile

6%

Others

5%

Toll Roads

95%

Hispasat

5%

Toll Roads

94%

Hispasat

6%




• Abertis total revenues reached €3,328Mn as of 9M 2015. It is worth mentioning that this result is

net from the traffic guarantee related to the AP-7 agreement (€146Mn) which explains the slight 1.1%

decrease in comparison with the same period last year. On a comparable basis (i.e. applying the same

accounting treatment for the AP-7 and other non-recurrent items to 2014) revenues expanded by

5.2% mainly as a result of the traffic evolution and tariff increases. TSI also contributed with

additional revenues from the startup of the Dartford river crossing contract in November of 2014

(around €20Mn contribution). On the negative side, the revenues were impacted by the devaluation of

the Brazilian real partially offset by the appreciation of the Chilean and Argentinean pesos and the US

dollar vs. the euro.

• The amounts related to the efficiency program (lay-off indemnities), TSI operations and the

Argentinean inflation contributed to an 8.8% increase in total operating expenses. On a comparable

basis − without indemnities and other non-recurrent positive effects in Sapn (France) and Autopistas

del Sol (Chile), opex would have increased by 3%.

• 9M 2015 EBITDA totaled €2,129Mn, up 5% on a comparable basis. The headline 5.9% decrease vs.

9M14 stems from the different accounting treatment of the AP-7 agreement traffic guarantee and the

above-mentioned opex impacts.

• The provisions carried out by the company during the Q2 regarding the AP-7 Agreement traffic

guarantee until 2014, in addition to the impairment of Arteris in Brazil, impacted 9M 2015 EBIT. On a

comparable basis (adjusting by the provisions and the traffic guarantee of AP-7) EBIT increased by

5.2%.

• 9M 2015 net financial result amounted €889Mn of which €554Mn related to the financial cost of

the debt at an average cost of 5.2%, and €335Mn reflected other costs on the provisions for the AP-7

Agreement (6.5% annual financial compensation for the traffic guarantee), the provision on H1 2015 to

cover the eventual risk of a new demand for payment from the rest of the financial debtors of Alazor,

and upfront costs related to the HIT liability management.

• The share of profits of associates mainly includes the contribution from jointly-owned companies

(basically Trados and Autopista Central), or by companies in which Abertis has a significant influence

and, from May 2015, Cellnex Telecom. The reported figures include a €73Mn provision for Autema in

line with the decision taken by the majority shareholder in order to fully cover the risk linked to a

contractual dispute with the granting authority.

• 9M 2015 income tax amounts to €2Mn, mainly explained by the negative taxable base resulting from

the booking of the already mentioned provisions carried out by the company during the Q2 2015. The

current tax rates in the main countries where Abertis operates are as follow: Spain (28% from the

previous 30%); France (38%); Brazil (34%) and Chile (22.5%).

• Results from Discontinued Operations reflect the net book gains from the disposal of a 66% stake

in Cellnex Telecom, as well as the revaluation of the remaining 34% stake, and to a lesser degree the

disposal of the last airports in the portfolio (at present there are no more airports within Abertis’ asset

base).

• Minorities are mainly linked to the results’ contribution to external partners of HIT, Arteris, and

Hispasat. In this sense, the impairment in Brazil explains the positive sign in terms of the minorities

results which offsets the profits achieved mainly in France and Hispasat.

• The contribution originated by the Cellnex IPO contributed to a historic growth (+226.2%) in the

company’s net profit amounting €1.797Mn in the 9M 2015. On a comparable basis, 9M 2015 net

profit increased 6%.





Toll Roads

€ Mn 9M 2015 Chg 9M 2015 Chg 9M 2015 Chg

Total Revenues 918 -11.2% 1,209 2.6% 556 -12.1%

Operating expenses -180 -422 -274

EBITDA 738 -14.1% 786 -0.2% 282 -12.5%

Depreciation -1,060 -212 -200

EBIT -322 575 82

Amortization of revalued assets -38 -67 -739

EBIT (2) -360 nm 508 4.0% -657 nm

€ Mn 9M 2015 Chg 9M 2015 Chg 9M 2015 Chg

Total Revenues 174 16.4% 314 39.0% 3,170 -1.6%

Operating expenses -48 -202 -1,126

EBITDA 126 8.7% 112 41.5% 2,044 -5.5%

Depreciation -27 -32 -1,532

EBIT 99 79 512


EBIT (2) 78 10.0% 78 55.2% -353 nm

ROW Toll Roads

Spain France Brazil

Chile

• Toll roads contributed 95% of Abertis revenue during 9M15 (€3.170Mn) and 94% of its EBITDA

(€2.044Mn) over the same period. Revenues and EBITDA outside Spain amounted to 69% and 65%

respectively thanks to the international diversification of the group.

• Recurrent revenues grew in all the markets with the exception of Brazil mainly due to FX effects

(€80Mn impact from the Brazilian real devaluation). Revenues in Spain are affected by the

provision for the traffic guarantee of the AP-7 Agreement (€146Mn). On a comparable basis and at a

fixed FX rate revenues grew by 4.7%.

• For the same reasons EBITDA declined 5.5%. Excluding these effects EBITDA for the toll road

segment grew 4.9%.

• At the EBIT level, it should be noted that a provision has been booked on the account receivable

generated by the traffic guarantee of the AP-7 Agreement from 2006 until 2014. In addition, EBIT

recognizes the impact of the impairment of some of the Arteris assets. These effects are partly offset

by lower depreciation in France as a result of a longer concession term due to the agreement reached

with the French Government on the Plan de Relance.





Toll Roads Spain

9 M 2 0 15 Chg 9 M 2 0 15 Chg 9 M 2 0 15 Chg 9 M 2 0 15 Chg

ADT 26,551 5.3% 48,950 4.7% 16,099 7.3% 23,248 6.0%

% HV 20% 0.4 4% 0.0 12% 1.0 6% -0.2

% ETC revenues 83% 0.9 83% 0.3 66% 1.4 86% 0.7

T o tal R evenues 359 -27.7% 85 2.0% 215 6.9% 66 -6.0%

Operating expenses -62 -19 -38 -12

EB IT D A 296 -31.8% 66 -3.2% 176 9.3% 53 -6.4%

% margin 82.6% -5.0 77.6% -4.2 82.2% 1.8 81.3% -0.4

Depreciation -916 -18 -50 -10

EB IT -620 -265.1% 47 -4.2% 126 13.6% 43 -7.6%

% margin -172.8% -248.5 56.0% -3.6 58.8% 3.5 65.9% -1.1

Amortization of revalued assets 0 0 0 0

EB IT (2) -620 -265.1% 47 -4.2% 126 13.6% 43 -7.6%

% margin -172.8% -248.5 56.0% -3.6 58.8% 3.5 65.9% -1.1


ADT 11,978 5.6% 22,500 6.1% 6,630 9.4% 19,929 5.9%

% HV 10% 0.1 11% 0.4 7% 0.0 14% 0.4

% ETC revenues 83% 1.4 68% 6.3 68% 6.0 80% 1.0

T o tal R evenues 104 4.4% 82 6.9% 918 -11.2%


EB IT D A 79 6.5% 64 10.2% 738 -14.1%

% margin 75.9% 1.5 78.7% 2.4 80.4% -2.6

Depreciation -26 -21 -1,060

EB IT 54 8.9% 44 13.1% -322 nm

% margin 51.3% 2.1 53.6% 3.0 -35.1%

Amortization of revalued assets -38 0 -38

EB IT (2) 16 38.8% 44 13.1% -360 nm

% margin 15.0% 3.7 53.6% 3.0 -39.2%

Total Spain

acesa aumar aucat

avasa iberpistas castellana

invicat

• The toll road activity in Abertis Spanish concessions posted a solid growth of 5.9% in terms of

traffic volume (ADT) with heavy vehicle traffic growing 9.2% while ADT for the light vehicles

expanded by 5.3%.

• Revenues were negatively impacted by the change in accounting criteria of the AP-7 agreement

traffic guarantee in Acesa, which also affected EBITDA and EBIT as detailed below.

Castellana results are included in

Iberpistas results





• Acesa: during the month of June, the Ministry of Public Works rejected the administrative appeal

filed by Acesa against the 2011 annual account review. As a result of the above, Acesa filed an

administrative dispute appeal (Recurso Contencioso-Administrativo) in the Madrid Superior Court

of Justice (Tribunal Superior de Justicia de Madrid).

In addition, the company’s request for a contract interpretation from the Council Of Ministers has

progressed in its legal course.

As previously mentioned, and following a prudent accounting approach, the Company has booked a

provision for the total traffic guarantee as of December 2014 (asset impairment), as well as for the

revenues accrued for this concept during 2015 (impact on revenues), and its financial capitalization

(impact on financial result).

• Invicat: Revenues expand by 2% mainly due to the traffic increase (4.7%). EBITDA is affected by

some expenses related to the second efficiency plan. Excluding the aforementioned impact, there is a

decrease of operating expenses basically because of the personnel cost control. The comparable

EBITDA without indemnities costs grew by 3%.

• Aumar: The good ADT performance (+7.3%) contributed to the 6.9% revenues growth. The

traffic performance was positively impacted by the diverted traffic in national roads to Abertis toll

roads, i.e. AP-7 Tarragona-Valencia stretch since July 2015. Operating expenses decrease by 3% as a

result of the consolidation of the previous efficiency plan (14% reduction of employees) and the cost

control in other operating expenses, and contributes to an EBITDA growth of 9.3%.

In July, the company has filed an administrative dispute appeal (Recurso Contencioso-Administrativo)

in the Supreme Court due to the impact from the construction of free parallel roads.

• Aucat: The evolution of all its figures is affected by the non recurrent positive impact registered

during 1Q 2014 as a consequence of the agreement with the regional government. Excluding the

aforementioned impact, revenues increase by 8.9% (mainly by the activity evolution, 6%) and

EBITDA by 12.4% due to a reduction of operating expenses of 4.2%.

• Avasa: Posted a 5.6% ADT increase supported by strong heavy traffic figures coming from the

Zaragoza-Gallur stretch. Operating expenses decrease 1.6% due to the consolidation of the efficiency

measures (average reduction of employees of 21%) which leads EBITDA to grow 6.5%.

• Iberpistas (includes Castellana): Posted strong EBITDA growth (+10.2%) with ADT growing

6.1% and 9.4% respectively for Iberpistas and Castellana.





Toll Roads France


ADT 24,009 2.1% 29,453 2.1% 24,380 2.1%

% HV 16% -0.1

% ETC revenues 89% 2.7

T o tal R evenues 883 2.3% 290 2.4% 35 12.9% 1,209 2.6%

Operating expenses -300 -97 -25 -422

EB IT D A 583 1.2% 193 -2.3% 10 -26.5% 786 -0.2%

% margin 66.1% -0.7 66.5% -3.2 27.7% -14.9 65.0% -1.8

Depreciation -143 -67 -2 -212

EB IT 441 3.8% 126 -0.7% 8 17.7% 575 2.9%

% margin 49.9% 0.7 43.5% -1.4 21.7% 0.9 47.5%

Amortization of revalued assets -67 0 0 -67

EB IT (2) 374 5.5% 126 -0.7% 8 17.7% 508 4.0%

% margin 42.3% 1.3 43.5% -1.4 21.7% 0.9 42.0%

Sanef SAPN Others Total France

• Abertis France toll roads are responsible for the largest contribution of the company´s revenue

and EBITDA (37% and 37% YTD respectively).

• Revenues registered a 2.6% growth over the same period of 2014 supported by an ADT increase of

2.1%. As mentioned before, calendar effects and fuel prices contributed to the traffic performance.

• EBITDA remained practically flat (-0.2%) affected by the impact registered in SAPN during 2014 due

to the reversal of a provision (€10Mn impact), as well as a one-off adjustment to concession fees. Excluding such impact, EBITDA would grow by 2.1%.

• The contribution from TSI has been reclassified into Toll Roads RoW activities.

• On July 2015, the France Government published the amendments to the Sanef and SAPN concession

contracts (Plan Relance Agreement) that includes an investment of €590Mn on behalf of the concessionaires in exchange for an average 2.5 years extension of the concession contracts. In

addition, the sector has entered into a series of agreements with the government which provide stability to the concession contracts.

• In September Holding d’Infrastructures de Transport, a French company controlled by Abertis, issued

bonds for a total amount of €200Mn, maturing in March 2025, and paying an annual coupon of 2.25%,

below the company’s cost of debt and extending the debt maturity. Proceeds from the issue have been used to repay €250Mn of the 2018 bond paying a 5.75% coupon.





Toll Roads Brazil

9 M 2 0 15 Chg 9 M 2 0 15 Chg 9 M 2 0 15 Chg 9 M 2 0 15 Chg 9 M 2 0 15 Chg 9 M 2 0 15 Chg

ADT 16,152 -2.2% 25,025 -1.6% 21,471 -3.2% 34,014 1.8% 6,796 -4.6% 21,166 -1.1%

% HV 23% -1.5 35% -2.5 54% -2.6 29% -2.4 38% -2.8

% ETC revenues 41% 2.3 42% 1.2 53% 1.7 35% 0.5 33% 0.8

T o tal R evenues 37 -8.3% 58 -12.4% 61 -4.7% 49 -5.3% 23 -15.5% 227 -8.6%

Operating expenses -22 -37 -32 -32 -16 -138

EB IT D A 15 -1.4% 21 -8.7% 29 -0.1% 17 -12.7% 8 -20.2% 89 -6.9%

% margin 40.7% 2.9 36.2% 1.5 46.8% 2.1 34.8% -3.0 32.8% -1.9 39.1%

Depreciation -45 -29 -15 -13 -11 -113

EB IT -30 -430.0% -8 -190.3% 13 -11.1% 4 -58.9% -3 -203.3% -24 -151.7%

% margin -81.6% -104.3 -13.5% -26.6 21.9% -1.6 8.5% -11.2 -14.8% -26.8 -10.5%

Amortization of revalued assets -16 -9 -31 1 0 -55

EB IT (2) -46 -737.9% -17 -324.1% -18 -258.1% 5 -51.5% -3 -215.7% -79 -304.6%

% margin -123.7% -141.5 -28.7% -39.9 -29.3% -47.0 9.7% -9.2 -14.7% -25.4 -34.7%

9 M 2 0 15 Chg 9 M 2 0 15 Chg 9 M 2 0 15 Chg 9 M 2 0 15 Chg 9 M 2 0 15 Chg 9 M 2 0 15 Chg

ADT 11,926 -1.8% 14,621 -1.3% 10,224 -1.8% 14,716 -2.4% 12,448 -1.9% 18,077 -1.3%

% HV 27% -1.5 29% -1.9 28% -1.4 24% -1.1 33% -2.4

% ETC revenues 60% 0.8 62% 0.8 58% 0.5 55% 0.8 47% 0.8

T o tal R evenues 73 -11.4% 78 -11.8% 83 -10.6% 68 -11.4% 302 -11.3% 556 -12.1%

Operating expenses -27 -25 -31 -23 -106 -274

EB IT D A 46 -9.2% 53 -12.1% 52 -13.7% 45 -16.1% 196 -12.8% 282 -12.5%

% margin 62.7% 1.5 68.3% -0.3 62.6% -2.2 66.2% -3.7 64.9% 50.7% -0.2

Depreciation -16 -12 -8 -19 -54 -200

EB IT 30 -21.7% 42 -15.2% 44 -18.7% 26 -26.6% 142 -20.0% 82 nm

% margin 41.3% -5.5 53.4% -2.2 53.2% -5.3 38.7% -8.0 47.1% 14.8%

Amortization of revalued assets -48 -64 -173 -32 -317 -739

EB IT (2) -18 -180.2% -22 -170.5% -129 -538.0% -6 -124.2% -175 -261.3% -657 nm

% margin -25.1% -52.8 -28.2% -63.4 -155.4% -187.1 -8.9% -41.6 -58.0% -118.2%

Fluminense Fernao Dias Regis Bittencourt Litoral Sul

Autovias Centrovias Intervias Via Norte

Planalto Sul Arteris Federais

Arteris Estaduais Total Brazil

• Arteris activity was the only posting negative traffic figures (-1.3%) due to the worsening of the

Brazilian economy which is very cyclical. In this sense traffic should more than recover after this

slowdown specially on the back of the major capex plan being executed by Arteris which will remove

the country's main logistics bottlenecks and boost traffic in the near future as the projects are

completed. The long term view for Brazil is very promising and Abertis is increasing its exposure to

the country with the launch a Public Tender Offer for the totality of Arteris shares.

• Despite this scenario light vehicles continue to grow posting a 2.3% increase in the period. On the

flipside heavy vehicles decline 7.9% as the concessions revenue mix is mainly composed of the

contribution of heavy vehicles which are the most impacted during downturn cycles. Worth mentioning

the road haulers’ strike in February 2015 − which also impacted traffic.

• The slowdown in traffic, but especially the depreciation of the Brazilian real vs. the euro (-13.4%),

were responsible for the 12.1% decrease in total revenues partially offset by increases in tariffs higher

than inflation for the federal concessions as an outcome of amendments in the contracts to restore its

economic balance after the inclusions of new investments commitments. At fixed FX rate, operating

revenues would have remained practically stable (-0.3%).

Total Brazil includes Holding and other activities from Group companies like those for road maintenance





• During 9M 2015 the federal government announced that it will authorize the economic and financial

rebalancing of the concession contracts through tariff increases to compensate for the Law of Truck

Drivers prohibiting the charge of the suspended axles for heavy vehicles in the federal concessions in

the same proportion as the losses. The law was published in April and as the toll revenue of the

Brazilian concessions is based in a vehicle equivalent system (charge per axle) − which made most of

its revenue come from heavy vehicles – it has a material impact in the toll revenues of the federal

concessions.

• The revenue impacts were responsible for the drop in EBITDA (-12.5% YTD) as the operating

expenses remained relatively at the same level of 2014 even with an accumulated 9.5% IPCA inflation

at the end of September 2015. In this sense EBITDA margin was flat when comparing to the same

period of last year even. In local currency EBITDA decreased by 1%.

• During the first half of the year 2015, taking into account the macroeconomic situation in Brazil and

the intention to launch a public tender offer for the acquisition of all common shares issued by Arteris

at an offering price per share of R$10.15, a net provision amounting €260Mn was booked in Arteris.

• The financials included by Abertis from Participes in Brazil, Arteris, and its group do not necessarily

match those to be reported by Arteris, as the scope is not exactly the same. The IFRS rules in Brazil

show small differences with Abertis’ IFRS criteria and, most importantly, Abertis includes below

EBITDA a number of financial impacts as well as impacts from the amortization of revalued assets

associated with the transaction (PPA).

Download full tables & data Download full tables & data






Toll Roads Chile

9 M 2 0 15 Chg 9 M 2 0 15 Chg 9 M 2 0 15 Chg

ADT 31,871 8.1% 6,449 5.0% 17,123 6.0%

% HV 13% -0.8 38% -2.4 11% -0.4

% ETC revenues 11% 2.7 0% 0.0 13% 1.2

T o tal R evenues 73 18.1% 27 11.2% 25 18.5%


EB IT D A 56 18.5% 16 11.9% 20 21.6%

% margin 77.8% 0.3 60.2% 0.3 82.3% 2.1

Depreciation -12 -3 -3

EB IT 45 22.0% 13 13.0% 18 23.9%

% margin 61.9% 2.0 49.5% 0.8 72.1% 3.1

Amortization of revalued assets -9 0 -5

EB IT (2) 36 26.3% 13 13.0% 13 32.2%

% margin 50.0% 3.3 49.5% 0.8 51.8% 5.4

9 M 2 0 15 Chg 9 M 2 0 15 Chg 9 M 2 0 15 Chg

ADT 36,012 10.5% 8,339 9.3% 19,007 8.3%

% HV 10% -0.3 15% 0.4 15% 2.8

% ETC revenues 14% 1.4 0% 0.0 11% 1.7

T o tal R evenues 35 12.2% 14 31.1% 174 16.4%


EB IT D A 28 -11.2% 9 47.0% 126 8.7%

% margin 79.4% -20.9 65.7% 7.1 72.6% -5.2

Depreciation -4 -5 -27

EB IT 23 -14.1% 4 138.9% 99 9.3%

% margin 67.0% -20.5 32.0% 14.5 56.8%


EB IT (2) 18 -18.7% 3 377.6% 78 10.0%

% margin 51.9% -19.7 22.8% 16.6 45.1%

A. del Sol Los Andes Total Chile

Rutas Elqui Libertadores

• The Chilean assets posted the highest growth in terms of traffic, revenues and EBITDA among

the group’s concessions.

• ADT recorded an expansion of 8.3% as light vehicles posted a 9.5% growth especially by good

weather conditions during the period, calendar effect on public holidays generating long weekends and

also by the higher traffic due to the influx to the cities hosting the America's Cup.

Total Chile includes Holding and other activities from Group companies





• Total revenues climbed 16.4% as a combination good traffic performance, tariffs increases

(+5.8%) and appreciation of the Chilean peso vs. the euro (6.3%) altogether contributing for the

8.7% increase in the YTD EBITDA. The 2014 EBITDA is affected by a non recurrent positive impact

in Autopista del Sol. Excluding the aforementioned impact, EBITDA would grow 9% at fixed FX

rate.

• The September earthquake has not caused significant damage to our assets. The most significant

effect was a 24 hour traffic cut along 15 km at Autopista Elqui (Los Vilos-La Serena).

• Libertadores: 18.5% increase in revenues due to the FX appreciation, the tariff increase, and the

positive ADT performance (6.0%, positively affected by the closing of San Antonio Port during January

2014, although part of the impact has been neutralized by the strike of the Federación de

Trabajadores Portuarios during February and March 2015). The operating cost control makes EBITDA

margins increase in 216 bps.

• Sol: The concession posted the highest traffic evolution among the Chilean assets (+10.5% ADT)

boosting revenue up 12.2%. On the other hand, during the first half of 2014, a provision related to

a dispute for additional works and costs in the new access to San Antonio Port, over which the

Arbitration Commission recognized the unappelable compensation of €10Mn to the concessionaire by

the Ministry and therefore affects the EBITDA evolution in comparison with the 9M 14 figures.

• Andes: Important increase in revenues (31.1%) as a result of ADT (+9.3%), with a Heavy Vehicle

ADT of 12.4% positively affected as this route is the main option for Puerto Valparaiso. Light vehicles

grew by 8.8% on the back of an inflow of tourists attending the Americas Cup. The operating cost

control leads to an EBITDA increase of 47% (30% in local currency).

• Autopista Central: is consolidated under the equity method, and therefore, it does not contribute to

the operating figures. The positive evolution of the activity (4.5%), together with the tariff revision

(6.0%), vehicle mix and others, made revenues increase by 18% at fixed FX rate to reach

€164.2Mn. As of 30 September 2015, EBITDA (€111.2 Mn) increases by 13.2% at fixed FX rate, due

to the good revenues grow and moderated by the increase in the bad debt provision. The EBIT at

fixed FX rate is enlarged by 15% to €88.2Mn.





Hispasat

• Revenues increase by 13.8% to €157Mn, mainly due to higher sales in the orbital position 61 W, to

revenues from commercial agreements in new orbital positions, and to the FX evolution. 60% of the revenues come from Latin America.

• It is worth highlighting the €89Mn payment of the Amazonas 4A insurance policy. This amount was

allocated to the early repayment of the project financing. On the other hand, the successful launch of

the Intelsat 34 satellite on August 20 provides continuity and growth to the services offered from the orbital position 55.5 W and replacing Amazonas I.

• Operating expenses increase due to higher personnel costs, commercialization costs for the new capacity and for other non-recurrent expenses incurred to obtain the efficiencies.

• The above-mentioned events were responsible for the increase of 11.9% of Hispasat EBITDA amounting €133Mn YTD.


9M 2015 Chg

Revenues 157 13.8%

Operating expenses -24

EBITDA 133 11.9%

Margin 84.6% -2.7

Depreciation -65

EBIT 68

% margin 43.0%

Amortization of revalued assets -21

EBIT (2) 46 71.7%

% margin 29.5% 5.8




Cash Flow

Capex

€ Mn Operating Expansion

Spain 7 14

France 12 61

Brazil 18 278

Chile 2 4

Others 3 5

Autopistas 42 362

Telecom 0 159

Holding 0 8

Total 43 529

• During the first nine months of the year, operating capex amounted to €43Mn. The main

investments relate to Brazil (€18Mn by renovation and modernization of the existing network).

• Expansion capex reached €529Mn during the period:

o Toll Roads: €362Mn, mainly as a result of the Brazilian Capex program (€278Mn).

o Telecom: €159Mn in Hispasat (mainly by the construction of new satellites, including Amazonas 5

and Hispasat 1F)

The acquisition of 50% (minus one share) of Autopistas del Sol and Libertadores during July 2015 is not included in the Capex of this section, but into the transactions M&A.


2,129

3,396

2,474

-889

-2 -47

2,248 -43-529

-293

-99

Ebitda Financial

result

Income tax Non cash

effects

Disposal of

assets

Operating

capex

Discretionary

cash flow

Expansion

capex

Dividends Minorities Net CF




Balance Sheet

• The most significant changes in the balance

sheet as of 30 September 2015 vs. December

2014 result from the sale of Cellnex and its

present classification as associates, from the

impairments carried out during the period and,

above all, from the FX effect vs. euro (39%

devaluation of the Brazilian real relative to the

euro).

• The Net Debt stood at €10,767Mn at the end of

September 2015, a €3,023Mn decrease vs.

December 2014, mainly as a result of the cash

flow generated during the period (€2.474Mn, driven by the collection of €2,071Mn resulting by

the disposal of Cellnex and €177Mn of MBJ, and

finally by the activity of the company), the

deconsolidation of Cellnex’s own debt (€329Mn)

and the FX effect, mainly the devaluation of the

Brazilian real, that offset the purchase of

treasury shares. The average cost of debt

remains at 5.2% and the Net Debt/EBITDA ratio

declines to 3.7x.

• As of 30 September 2015, available credit lines

amount to €3,535Mn and Cash at consolidated

level stands at €3,844Mn.

• The company’s cash generation and its available

resources comfortably cover its debt maturities

until 2020.


21,155

6,356

4,993

17,624

2,168

1 2

Current liabilities

Non-Current Assets

Current Assets

Shareholders' equity

Non-current liabilities

13,789

10,767

-2,474

-329133 99 -89 -447

84

Net debt 2014 Net CF Cellnex Net Debt Deconsolidation

M&A Investments

Buy-back program

Amazonas 4 Insurance

FX Others Net debt 2015

€ Mn 2014 9M 2015

Net debt 13,789 10,767

Cash and equivalents 2,242 3,844

Cash at Holding 844 2,939

Average cost of debt 5.2% 5.2%

Average maturity (yr) 6.0 5.8

Non-recourse debt 67% 65%

Long-term debt 91% 94%

Fixed rate debt 84% 89%

Bank debt 35% 34%

Capital markets 65% 66%

Debt in Spain 39% 40%

Undrawn credit lines 4,015 3,535




2015 2016 2017 2018 2019 2020 2021 2022 2023 2024+

Spain 98 674 872 92 926 829 79 55 664 1,636

France 116 220 326 1,102 320 258 1,722 265 363 1,106

Brazil 55 373 238 129 126 71 78 85 92 123

Chile 7 87 87 103 118 114 66 44 50 197

Others 1 9 31 321 10 11 10 10 11 443

277 1,363 1,554 1,747 1,500 1,283 1,955 459 1,180 3,505

Spain

Net Debt: €2,848 Mn Net Debt/EBITDA: 2.7x Average cost: 3.7% Average maturity: 5.6

France Net Debt: €5,342 Mn Net Debt/EBITDA: 5.1x Average cost: 4.6% Average maturity: 5.4

Brazil Net Debt: €1,164 Mn Net Debt/EBITDA: 2.5x Average cost: 11.8% Average maturity: 3.6

Chile Net Debt: €624 Mn Net Debt/EBITDA: 4.1x Average cost: 4.4% Average maturity: 5.8

RoW Net Debt: €793 Mn Net Debt/EBITDA: 6.1x Average cost: 5.9% Average maturity: 11.1

Maturities profile (€Mn)


277

1,363

1,5541,747

1,500

1,283

1,955

459

1,180

3,505

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024+

Corporate debt Subsidiaries debt




Annexes

Annex I: P&L, Balance Sheet and Cash Flow

P&L (€ Mn) 9M 2014 9M 2015 Chg

Revenues 3,364 3,328 -1.1%

Toll Roads 3,220 3,170 -1.6%

Hispasat 138 157 13.8%

Holding 5 1 -90.3%

Operating expenses -1,101 -1,199

EBITDA 2,262 2,129 -5.9%

% margin 67.3% 63.9%

Toll Roads 2,163 2,044 -5.5%

% margin 67.2% 64.5%

Hispasat 119 133 11.9%

% margin 86.1% 84.6%

Holding -20 -48 -138.3%

% margin n/a n/a

Depreciation -642 -1,600

Toll Roads -569 -1,532

Hispasat -69 -65

Holding -4 -3

EBIT 1,620 529 -67.3%

% margin 48.2% 15.9%

Toll Roads 1,594 512 -67.9%

% margin 49.5% 16.2%

Hispasat 50 68 34.7%

% margin 36.3% 43.0%

Holding -24 -51 -110.3%

% margin n/a n/a

Amortization of revalued assets -229 -886

Toll Roads -206 -865

Hispasat -23 -21

Holding 0 0

EBIT (2) 1,391 -357 -125.6%

% margin 41.4% -10.7%

Toll Roads 1,388 -353 -125.4%

% margin 43.1% -11.1%

Hispasat 27 46 71.7%

% margin 19.6% 29.5%

Holding -24 -51 -110.3%

% margin n/a n/a

Other financial results 21 -335

Cost of debt -558 -554

Share of profits (losses) of associates 26 -52

PROFIT BEFORE TAX 880 -1,298 -247.4%

Income tax expense -282 -2

PROFIT FOR THE PERIOD 598 -1,300

Discontinued operations 70 2,721

Attributable to minority interests -117 376

NET ATT. PROFIT 551 1,797 226.2%


CF (€ Mn) 9M 2014 9M 2015 Chg

EBITDA 2,262 2,129 -5.9%

Financial result -537 -889

Income tax expense -282 -2

Cash flow 1,442 1,239 -14.1%

Adjust. & non cash effects -347 -47

Asset Disposals 274 2,248

Gross operating cash flow 1,369 3,439 151.1%

Operating capex -65 -43

Discretionary cash flow 1,305 3,396 160.3%

Dividends -282 -293

Payments to minorities -131 -99

Free cash flow II 892 3,003

Expansion capex - organic -550 -529

Free cash flow 341 2,474

Balance (€ Mn) 2014 9M 2015 Chg

Assets

Property, plant and equipment 1,976 1,285 -691

Intangible assets 17,585 15,468 -2,117

Investments & other fin. assets 4,216 4,402 186

Non-current assets 23,777 21,155 -2,622

Trade and other receivables 1,076 672 -405

Others 328 477 149

Cash 2,242 3,844 1,602

Current assets 3,648 4,993 1,345

Assets held for sale 316 0 -316

Total assets 27,740 26,148 -1,592

Equity & Liabilities

Share capital 2,695 2,830 135

Reserves and Minority interest 3,298 3,526 228

Shareholder's equity 5,993 6,356 363

Loans and borrowings 14,665 13,774 -891

Other liabilities 3,888 3,850 -38

Non-current liabilities 18,552 17,624 -928

Loans and borrowings 1,367 836 -531

Trade and other payables 1,712 1,332 -380

Current liabilities 3,079 2,168 -911

Liabilities held for sale 116 0 -116

Total equity and liabilities 27,740 26,148 -1,592


Annex II: Summary of Relevant Facts

July 2015

Abertis communicated that, through its subsidiary Abertis Autopistas Chile, S.A., it had closed a purchase

agreement with Fondo de Inversión Público Penta Las Américas Infraestructura I and Fondo de Inversión

Público Penta Las Américas Infraestructura II for the acquisition of their 50% stake less one share in

Infraestructura Dos Mil, S.A. for an amount of 93,530 million Chilean peso (133.7 million euro).

Abertis communicated its intention to launch a Public Tender Offer for up to 6.5% of its share capital at a

price of 15.70€ per share.

August 2015

Abertis communicated that it had signed an exclusivity agreement with the consortium that controls the

Italian A4 Holding (consisting of Intesa, Astaldi and Tabacchi) for the eventual acquisition of the industrial

group.

Abertis communicated on the agreement with the French Government on its French concessions (Sanef

and SAPN) that include, among others, the execution of the “Plan de Relance”, which calls for an

investment of €590Mn on behalf of the concessionaires in exchange for an average 2.5 years extension of

the concession contracts.

September 2015

Abertis communicated that Holding d’Infrastructures de Transport, a French company controlled by

Abertis through a 52.55% stake, had closed a public issue of bonds for a total amount of 200 million

Euro, maturing in March 2025, and paying an annual coupon of 2.25%. The New Notes will be

consolidated and form a single series with the EUR 450,000,000 2.25% Notes due 24 March 2025 issued

on 24 September 2014.

Abertis communicated the authorization from the National Securities Commission of its voluntary tender

offer for the partial acquisition of its own shares.

Events subsequent to the closing

October 2015

CNMV communicated the final results for the Voluntary Tender Offer for the partial acquisition of its Own

Shares formulated by Abertis Infraestruturas on the 6.5% of its share capital. The offer was positively

concluded with the acceptance of 453,668,895 shares, representing 48.10% of the share capital.


Annex III: Contact Details Investor Relations

Steven Fernández [email protected] Sergio Castilla [email protected]

Laura Berjano [email protected]

Paseo de la Castellana, 39 28046 Madrid (España) Tel: +34 91 595 10 00

+34 91 595 10 20 [email protected] [email protected] Abertis website: www.abertis.com

mailto:[email protected]





http://www.abertis.com/


Annex IV: Disclaimer The information and forward-looking statements contained in this presentation have not been verified by an independent entity and the accuracy, completeness or correctness thereof should not be relied on. In this regard, the persons to whom this presentation is delivered are invited to refer to the documentation

published or registered by Abertis with the Spanish stocks markets regulation (Comision Nacional del Mercado de Valores). All forecasts and other statements included in this presentation that are not statements of historical fact, including, without limitation, those regarding the financial position, business strategy, management plans and objectives for future operations of Abertis (which term includes its subsidiaries and investees), are forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements of Abertis, or industry results, to be materially different from those expressed or implied

by these forward-looking statements. These forward-looking statements are based on numerous

assumptions regarding Abertis' present and future business strategies and the environment in which Abertis expect to operate in the future which may not be fulfilled. All forward looking statements and other statements herein speak only as of the date of this presentation. None of Abertis or any of its affiliates, advisors or representatives, nor any of their respective directors, officers, employees or agents, shall bear any liability (in negligence or otherwise) for any loss arising from any use of this presentation or its contents, or otherwise in connection herewith.

This distribution is addressed to analysts and to institutional or specialized investors only. The distribution of this presentation in certain other jurisdictions may be restricted by law. Consequently, persons to which this presentation or a copy of it is distributed must inform themselves about and observe such restrictions. By receiving this presentation you agree to observe those restrictions.

Nothing herein constitutes an offer to purchase and nothing herein may be used as the basis to enter into any contract or agreement.

Documents

Results 9M 2015 - Abertis · 9M 2015 Results. 28 October 2015 5 Activity • Abertis Toll Roads activity measured by the average daily traffic (ADT) posted a positive evolution of