Abertis Infraestructuras S.A.
Annual Report 2008

Plain-text annual report

triptic_ING.qxd:Layout 2 19/3/09 21:49 Página 1 Significant Events of the Year 1st quarter 2008 (cid:2) saba wins award of the 6-year concession to manage a new car park in Zaragoza (2,128 spaces) and also acquires the concession to run a car park in Madrid (357 spaces). (cid:2) abertis airports formalizes with ACS the purchase of 100% of the company desarrollo de concesiones aeroportuarias (dca), a holding group with interests in a total of 15 airports in Mexico, Jamaica, Chile and Colombia. (cid:2) abertis telecom buys 80% of the Madrid-based operator teledifusión madrid, a telecommunications network which operates local DTT licences. 2nd quarter 2008 (cid:2) The General Shareholders Meeting of abertis approves the annual individual and consolidated accounts for the financial year 2007, the distribution of a complementary dividend of 0.28 euros per share and the increase of stock dividends charged against reserves of a new share for each of every 20 old shares. (cid:2) On 11th April 2008, abertis’ 2007 complementary dividend of 0.28 euros per share is paid with a total cost of 178.8 million euros. (cid:2) abertis’s Corporate Social Responsibility (CSR) report for 2007 has received an A+ rating, the highest available from the Global Reporting Initiative (GRI), an international body which has developed the main world standard of sustainability reports. (cid:2) abertis is selected as preferred bidder to manage the Pennsylvania Turnpike motorway subject to the legislative changes and authorisations required from the House of Representatives in the State of Pennsylvania. The bid submitted by the consortium formed by abertis (50%), Citigroup (41.67%) and Criteria CaixaCorp (8.33%), is of 12,801 million dollars. The Pennsylvania Turnpike motorway is 801 km long and has an ADT of more than 35,000 vehicles in a concession up to 2083. (cid:2) abertis carries out the capital increase charged against reserves of 95.7 million euros. It involves the issue of 31.9 million new shares with one new share for every 20 old ones, and gives abertis a share capital of €2,010,987,168 with 670,329,056 shares. (cid:2) abertis telecom reaches a memorandum of agreement with TDF to acquire 65% of its stake in the operator Axion. The transaction is subject to a ruling by the competition authorities and the waiver of the right of first refusal by Axion’s other shareholders. (cid:2) abertis, through its wholly owned subsidiary abertis italia, takes direct control of 6.68% in Atlantia after the spin-off of Schemaventotto – the reference shareholder in Atlantia – is completed. (cid:2) abertis telecom formalises the purchase of 28.4% of Hispasat from Ensafeca Holding Empresarial (the former Apuna) and BBVA to become the main shareholder in the Spanish satellite operator. (cid:2) abertis sells 2.88% of Port Aventura to Criteria CaixaCorp. 3rd quarter 2008 (cid:2) abertis reaches an agreement with Grupo ACS for the purchase of its Spanish subsidiary INVIN, S.L., with interests, among others, in the concession operators Autopista Central (48%) and Rutas del Pacífico (50%), both in Chile. The agreement provides for the purchase of 51% of the company by abertis and of the remaining 49% by Santander Infrastructure Fund II, a fund of Grupo Santander. (cid:2) saba wins the contract to manage four car parks on the Troya peninsula in Portugal (852 spaces) which it will operate on a lease basis for a renewable period of three years. (cid:2) iberpistas signs an agreement to build a third lane on the San Rafael to Villacastín section of the AP-6 (20 km) which is to entail an investment of 72 million euros (2008–2010). (cid:2) sanef, through bet eire flow, has started up free flow electronic toll collection on the M50 in Dublin in the first project of its kind in Europe. (cid:2) abertis telecom wins the award to provide security and emergency services for the governments of Navarra and Valencia, and sea rescue services for the Ministry of Development. (cid:2) abertis remains on the worldwide Dow Jones Sustainability Index World and the Dow Jones Sustainability Index Stoxx for Europe for the third year in a row. (cid:2) On 28th October the payment of a interni dividend for the financial year of 2008 is made by abertis for a total amount of 201.1 million euros, which represents a gross amount of 0.30 euros per share, 7.1% more than the dividend on account paid per share the previous year. 4th quarter 2007 (cid:2) The Pennsylvania Transportation Partners consortium formed by abertis, Citigroup and Criteria CaixaCorp, which won the tender last May for the Pennsylvania Turnpike motorway concession, decides not to extend its bid which expired on 30th September in the light of the changes in the legislative procedures in the General Assembly of the State of Pennsylvania not being passed. The end of the validity period for the bid entails the recovery of the guarantees deposited and release from the financing commitments agreed in the project. (cid:2) saba acquires 100% of Parcheggio Arena S.r.l., a company which holds the Verona car park concession (870 spaces and a 22-year concession), and wins the contract award to manage the car parks at Barcelona airport (24,719 spaces) for 3 years with the option of an annual extension up to a maximum of five. (cid:2) abertis and Citi close an agreement for the transfer of shares held by Itínere in a number of companies, which will come into effect when Citi Infrastructure Investors has successfully concluded its acquisition of shares in Itínere. The transaction is subject to authorisation. Once it has been completed, abertis will own 100% of Avasa and in Chile, 100% of Elqui, 100% of Gesa and 79% of Rutas del Pacífico and Operadora del Pacífico. (cid:2) The consortium formed by abertis and Santander Infrastructure Fund II executes the purchase of 100% of the shares of Inversora de Infraestructuras, S.L. (Invinsl), a Spanish subsidiary of ACS and holder of shares in Autopista Central (50% at the time of the purchase) and Rutas del Pacífico (50%). abertis’s holding in the consortium is finally of 57.7% while Santander Infrastructure Fund II has the remaining 42.3%. (cid:2) acesa starts the extension works of the C-32 motorway on the 4.2-km stretch from Palafolls to Tordera. Total forecast investment comes to 55 million euros and the project is expected to be completed in 2010. (cid:2) abertis telecom acquires an additional 5% stake in Hispasat from EADS/CASA, thus consolidating its position as the leading shareholder in the Spanish satellite operator with a direct stake of 33.4%. Taking into account its indirect holding through Eutelsat, its total stake is 42.1%. www.abertis.com annual report 2008 0 Letter from the chairman 1. Corporate administration 1.1 Corporate administration 1.2 Administrative bodies Board of Directors Delegated monitoring bodies Senior management Toll road business Diversification Business 2. abertis group business activities 2.1 Toll roads 2.2 Telecommunications Infrastructures 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 3.1 abertis’ CSR Strategic Plan 3.2 Summary of Indicators 2008 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market 4 10 10 11 11 11 12 12 12 16 21 34 38 44 48 54 54 57 60 60 66 68 4 annual report letter from the chairman Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information Letter from the chairman Dear Shareholders, The problems the international financial markets have been Now that we have made our diagnosis and seen the scale and scope experiencing since August 2007 gave rise in 2008 to the first of the crisis (the hypothesis that the world’s great economic regions genuinely global crisis that we have had to face. In spite of the will be become decoupled has yet to be fulfilled), we are now at ability that national governments, central banks and assorted the stage of dealing with its consequences, drawing up strategies for regulatory authorities now have to intervene, it may well be the action and identifying the lessons we should learn. case that we are faced with a phenomenon whose scale and significance in terms of depth, length and impact on the economy The path taken by abertis and society we have yet to fully appreciate. In the case of abertis, I believe I am on safe ground when I say that The coming together of a series of factors which crystallised in the given the uncertainty and risk, and in sharp contrast to other subprime mortgage crisis in the United States – but which are by no economic and business players who have taken the growth model means restricted to it – are symptomatic of the end of an era. This of recent years to extremes, we have been able to modulate growth period which we have now left behind was marked by a model of which has combined making the most of the liquidity in the financial growth based on a sustained policy of low (and sometimes financial markets with responsible and rigorous use of these even negative) real interest rates that generated extreme liquidity resources. in the system, and as a result the resort to excessive indebtedness which ended up distorting the relationship between the prices of assets and their real value. After investing almost €9,000 million between 2004 and the end of 2008 in expanding and internationalising our activities, we have brought about major changes in our Group. Today 50% of our Other indicators suggestive of volatile and destabilising behaviour, such as commodity and food prices, the euro/dollar exchange rate and, in the case of Spain and the United States, a major adjustment revenue comes from outside Spain and 25% of our business (more than €900 million) is generated by our telecommunications, airport, car park and logistics park operations. We have thus successfully in real estate prices and the burden of a trade deficit, have helped consolidated our business model as a mobility and this slide towards crisis in the world economy. telecommunications infrastructures manager. 5 annual report letter from the chairman Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information With the same long-term outlook which we have had all these years, without exposing ourselves to unnecessary risks and reaffirming our commitment to rigour and caution in our actions, we can now look forward to a period of consolidation. Today we do not need to backtrack. We do not have to disinvest as In the case of Chile this consolidation strategy also has a a result of financial pressure or need. With the same long-term geographical component to it. In Chile we already have five lines of outlook which we have had all these years, without exposing business and we are managing to reproduce the operational and ourselves to unnecessary risks and reaffirming our commitment to relational synergies which stem from the joint yet diverse presence rigour and caution in our actions, we can now look forward to a of our Group in the same country. period of consolidation in which our priorities, at least until the credit markets get back to normal, will be geared towards We are always analysing market situations and opportunities, and buttressing our position in businesses and companies in which we as a result in September we decided not to extend our bid for the already have a stake, with the resultant capacity for control and concession for the Pennsylvania Turnpike motorway. It was a tender greater visibility for them in our balance sheet and P&L results. of major strategic importance for the Group in which the consortium we headed was chosen as the preferred bidder in May. Part of this approach consists of the operations that were finalised However, given the uncertainty about the final outcome which or announced in 2008. These have included taking an initial holding depended on voting in the Assembly of the State of Pennsylvania of 28.4% in Hispasat, subsequently added to with another 5% to together with growing financial risk in a situation of brusque make us the main shareholder in the company, which has instability in the markets, in the end we opted not to extend. consolidated our position in the communications satellite industry. Nonetheless, we shall continue to monitor the decisions taken by There is also the agreement we reached with Citi to buy its holdings the Pennsylvanian authorities in 2009 with respect to the issue in in the concession companies Rutas del Pacífico and Elqui in Chile case they give rise to future opportunities. and Avasa (which runs the AP-68 motorway between Zaragoza and Bilbao) in Spain once its takeover of Itinere has been completed in 2009. As a result of these transactions abertis will become the majority shareholder in the three concession operators by adding to its previous acquisition of ACS’s holdings in Chilean motorways. 6 annual report letter from the chairman Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information Key factors in 2008: business and geographical diversification The main figures for the 2008 financial year, which are exhaustively Among the most significant events on the stock exchanges in 2008 set out in the pages of this Annual Report, show both the negative were the major adjustments experienced by listed stock as a whole. effect of a significant slowdown in economic activity in the various It should be noted that unlike other markets such as real estate, in countries in which we operate and also the positive way in which 2008 the stock exchange has been the only one able to offer fluidity this impact has been absorbed and mitigated due to our mix of and liquidity in its transactions, and thus it has been affected by businesses and their geographical distribution. Thus, for instance, the consequences of the lack of liquidity in the system as a whole. today more than half of our toll road business is outside Spain, with Our stock has also been part of this downward trend, although its the sanef network in France, whose performance was significantly performance in comparison with the Ibex 35 and other stocks in better than that of its Spanish counterpart, being especially our sub-sector in Spain and in other markets continues to signal important. the solidity and stability which have always been our characteristic traits. So while we have slid down with the market, we have in fact The fact that 50% of our total revenue and 45% of our ebitda is done slightly better than it and our performance has been less generated outside Spain together with the more acyclic nature of negative than that of our competitors. businesses such as telecommunications infrastructures means that we have been able to close a financial period in 2008 that has been In addition to our share performance, I would also like to highlight marked by the stability and solidity of our most significant figures. the return given by our stock which reflects the solidity of the Operating revenue grew by 1.6% to reach €3,679 million. Ebitda came to €2,256 million, a fall of -0.6% compared with 2007, while net earnings were down by 9.4% to close the year at €618 million. Investment over the year came to €1,704 million of which 16.2% was allocated to operational investment and 83.8% to expansion. Group’s balance sheet and P&L results. In this respect the Board of Directors decided to increase the interim dividend for the financial year from €0.28 to €0.30 per share, and thus the total amount paid out to abertis stockholders in 2008 – additional dividend, bonus share issue and interim dividend – was up by 14.8% over 2007. 7 annual report letter from the chairman Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information We can and must face up to the uncertainty in the markets and the economy with the consistency of models based on analysis, a sense of realism and opportunity cost. In the face of uncertainty, stick to a model Those of us who are businesspeople and managers need to have a We can and must face up to the uncertainty in the markets and the clear understanding of what our role in the business value chain is. economy with the consistency of models based on analysis, a sense We cannot confuse the markets and our shareholders. If we are of realism and opportunity cost. Nowadays any strategy for businesspeople who have an industrial model, we need to commit expansion and growth will depend a lot more on equity and the to what we know how to do, to grow and diversify our geographical solidity and soundness of the project involved and a whole lot less risk, yet making sure we do this in areas which we are familiar with on excessive credit and indebtedness. This economic reality and and which we can manage in the medium and long term. scenario are not only not new but are also the basis on which Rigour, caution, tenacity, a commitment to continuance and a firm abertis has laid the foundations of its growth, and are moreover and positive attitude to the unfavourable circumstances and factors the only sustainable ones that can deliver a believable project that we may be faced with: these are the foundations on which we build it is worth working for. We continue to be, with all of the our values and the core of our actions which seek to meet the conditioning factors and limitations of the current economic expectations of responsibility and sustainability which our situation, in charge of the fate of this project which belongs to all shareholders, employees, society and government have about our of us: to our shareholders and to the 12,000 people who work every Group. abertis's chairmanship of the Corporate Reputation Forum in day to make it into a reality. 2008 is a symbolic expression of this commitment. Isidre Fainé, Chairman of abertis 1 Letter from the chairman 1. Corporate administration 1.1 Corporate administration 1.2 Administrative bodies Board of Directors Delegated monitoring bodies Senior management Toll road business Diversification Business 2. abertis group business activities 2.1 Toll roads 2.2 Telecommunications Infrastructures 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 3.1 abertis’ CSR Strategic Plan 3.2 Summary of Indicators 2008 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market 4 10 10 11 11 11 12 12 12 16 21 34 38 44 48 54 54 57 60 60 66 68 10 annual report corporate administration Letter from the chairman 1. Corporate administration 1.1 Corporate administration 1.2 Administrative bodies 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information 1.1 Corporate administration With respect to shareholders, the market and clients The regulations that govern decision-making processes in the abertis has also been working on the authority and operation of its company, ensure that shareholders can exercise their rights and committees, with special emphasis being placed on the powers and also establish the code of conduct for members of the Board of tasks conferred on its Audit and Control Committee. Likewise, it has Directors, are made up of the corporate statutes, the regulations of brought in new practices in terms of transparency and rigour the General Shareholders’ Meeting and the regulations of the Board including, as is set out in the regulations, the endorsement of the of Directors. financial statements by all members of its Board of Directors every In the course of 2008, abertis has continued working to improve its six months. corporate governance practice in order to keep in line with The purpose of the foregoing is to continue making progress in the international best practice recommendations, including the Unified development of a sound organisation that is transparent and Good Governance Code. rigorous in its practice and able to continue generating value with the trust of its customers and shareholders. In this respect, it not only ensures strict compliance with rules and recommendations in this area but also seeks to make sure that the fundamental concepts which guide its practice are built into the corporate culture of the entire organisation. Hence over the course of the year the company has continued to foster the implementation of corporate governance best practice, which is already consolidated in the listed company, in its subsidiaries. 11 annual report corporate administration Letter from the chairman 1. Corporate administration 1.1 Corporate administration 1.2 Administrative bodies 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information 1.2 Administrative bodies Board of Directors Delegated monitoring bodies The members of the abertis Board of Directors, as of the 31st of December 2008 are: Executive Committee Isidro Fainé Casas (Chairman) Florentino Pérez Rodríguez Isidro Fainé Casas (Chairman) G3T, S.L., represented by Carmen Godia Bull Florentino Pérez Rodríguez (1st Deputy Chairman) Pablo Vallbona Vadell G3T, S.L., represented by Carmen Godia Bull (2nd Deputy Chair- Salvador Alemany Mas man) Pablo Vallbona Vadell (3rd Deputy Chairman) Salvador Alemany Mas (Chief Executive Officer) Marcelino Armenter Vidal Marcelino Armenter Vidal Ángel García Altozano José Luis Olivas Martínez Manuel Raventós Negra Comunidades Gestionadas, S.A., represented by Antonio García Ferrer Miquel Roca Junyent (Secretary, non-board member) Enrique Corominas Vila Juan A. Margenat Padrós (Vice-secretary, non-board member) Dragados, S.A., represented by Demetrio Ullastres Llorente Javier Echenique Landiribar Ángel García Altozano Emilio García Gallego Miguel Ángel Gutiérrez Méndez Ernesto Mata López Enric Mata Tarragó Braulio Medel Cámara José Luis Olivas Martínez Ramón Pascual Fontana Manuel Raventós Negra Leopoldo Rodés Castañé During 2008 Manuel Raventós Negra has joined the commit- tee (to replace Caixa d’Estalvis de Catalunya). Audit and Control Committee Ernesto Mata López (Chairman) Enrique Corominas Vila Emilio García Gallego Marta Casas Caba (Secretary, non-board member) During 2008 Emilio García Gallego has joined the committee Miquel Roca Junyent (Secretary, non-board member) (to replace Caixa d’Estalvis de Catalunya) and Ernesto Mata Juan A. Margenat Padrós (Vice-secretary, non-board member) López has been appointed Chairman. During 2008 Caix d’Estalvis de Catalunya has left the Board. Appointment and Remuneration Committee Manuel Raventós Negra (Chairman) Ángel García Altozano Miguel Ángel Gutiérrez Méndez Juan A. Margenat Padrós (Secretary, non-board member) 12 annual report corporate administration Letter from the chairman 1. Corporate administration 1.1 Corporate administration 1.2 Administrative bodies 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information Senior Management as of the 31st of December 2008 Corporation & Shared Services Chief Executive Officer Studies and Communication Corporate Director Institutional Relations Corporate Director People and Organisation Corporate Director General Secretary General Counsel Corporate Security Director Chief Corporate Management Officer Corporate Development Director Corporate Tax Director Planning and Corporate Control Director Chief Financial and Shared Services Officer Finances Corporate Director Managing Director of serviabertis Toll Road Business Toll roads Spain Managing Director of Abertis Autopistas España Managing Director of acesa and aucat Managing Director of aumar Managing Director of iberpistas Toll Roads France and Northern Europe Managing Director of sanef Toll Roads America and International Salvador Alemany Mas Antoni Brunet Mauri Sergi Loughney Castells Joan Rafel Herrero Juan A. Margenat Padrós Marta Casas Caba Luis Jiménez Arrébola Josep Martínez Vila David Díaz Almazán Josep Maria García Martín Jordi Lagares Puig José Aljaro Navarro Lluís Subirà Laborda José Aljaro Navarro José Mª Morera Bosch Josep Lluís Giménez Sevilla Enrique Villalonga Torres José Antonio López Casas François Gauthey Managing Director of Toll Roads North America and International Managing Director of Toll Roads South America Jordi Graells Ferrández Gonzalo Ferre Moltó Diversification Business Managing Director of Diversification Business Telecommunications Infrastructures Managing Director of abertis telecom Airports Josep Martínez Vila Tobías Martínez Gimeno Managing Director of abertis airports Carlos del Río Carcaño Car Parks Managing Director of saba Logistics Services Managing Director of abertis logística Josep Canós Ciurana Joan Font Alegret 2 Letter from the chairman 1. Corporate administration 1.1 Corporate administration 1.2 Administrative bodies Board of Directors Delegated monitoring bodies Senior management Toll road business Diversification Business 2. abertis group business activities 2.1 Toll roads 2.2 Telecommunications Infrastructures 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 3.1 abertis’ CSR Strategic Plan 3.2 Summary of Indicators 2008 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market 4 10 10 11 11 11 12 12 12 16 21 34 38 44 48 54 54 57 60 60 66 68 16 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information 2. abertis group business activities abertis is an international group that manages mobility and tele- The processes of diversification and internationalisation of its ac- communications infrastructures through five business areas: tivities over recent years means that abertis now has a presence in a total of 17 countries on three continents and has consolidated its position as a world leader in the private management of public in- frastructures. Toll roads Telecommunications Infrastructures Airports Car Parks Logistics services 17 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information Share of operating revenues by sector and geographic area: Average workforce by sector and geographic area: During 2008 no significant variations have occurred in contributions either with respect to sector or geographical area. 18 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information Strategy The business model used by abertis is based on the following equity in a rigorous and responsible way. The credit crisis is principles and courses of action: encouraging greater project selection, and the choice of quality assets which generate cash flows and recurring and stable returns The industrial profile of its business project, characterised by has once again become one of the best options for medium- and long-term commitment accompanied by the development and long-term investment. management of infrastructure during its entire lifecycle. Short- and medium-term priority for the implementation of a Progressive diversification and internationalisation of strategy for consolidating shareholdings while continuing to processes and activities which have brought about an investment permanently monitor target markets in order to keep on localising effort of almost 9,000 million euros over the last five years. This and analysing investment opportunities. means that currently 50% of revenue is generated outside Spain, and 25% of the business is generated by telecommunications, Financial soundness and recurrence of the main indicators for its airports, car parks and logistics parks activities. Strategy for entering various business areas which enables abertis to maintain a a country is mapped out based on the ‘oil slick’ principle of comfortable and realisable level of indebtedness and absorb the spreading throughout the territory from an initial project which impact of the change in the business cycle in the global economy. brings local scale and knowledge, and thus being able to make the most of operational and relational synergies arising from a Recognition that our activities are intergenerational and diversified presence in the same country. awareness of the public service afforded by infrastructures during A selective and cautious investment policy which takes debate about infrastructures and to deliver the best solution for advantage of liquidity in financial markets but commits and uses each time and set of circumstances. the whole of the operating period. A willingness to join in with the The industrial profile of its business project, characterised by long-term commitment accompanied by the development and management of infrastructure during its entire lifecycle. 21 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information 2.1 Toll roads Reinforcement of leadership in Europe and Latin America expected to take place in 2009, will give abertis complete control of Spanish concession operator Avasa, together with 100% of Chilean concession operator Elqui and 79% of Rutas In 2008 abertis has continued to consolidate its leadership in the del Pacífico, also in Chile. world road infrastructure management market. It directly operates 3,527 kilometres of toll roads in France, Spain, Chile, Argentina and Consolidation transactions in assets and countries in which it is Puerto Rico and has a share in the operation of another 5,795 ki- already operating have marked abertis’s strategy over the course lometres through its presence in concessions in Europe and Latin of the year. Nonetheless, the company retains as its medium- and America. long-term business strategy playing an active role in projects which call for the partnership of the private sector in target countries, In 2008, the business unit has carried out major projects chiefly such as the United States, Europe and some parts of Latin America. geared towards providing enhanced service capacity and quality to This can be seen in the bid it submitted in the tender for the award a large part of its current network of toll roads and consolidating its of the Pennsylvania Turnpike concession, and in which it was the presence in the road infrastructures markets in France, Spain and successful bidder. However, in the end the failure to fulfil legislative Chile: procedures in the General Assembly of the State of Pennsylvania meant that it was not prepared to extend the term of its bid when · Over the course of the year, abertis has invested more than the latter expired at the end of September. 200 million euros in the technological development, quality and safety of its network and more than 190 million euros has abertis’s toll road business – the group’s main activity in terms of been spent on expanding it through construction and lane turnover and profits – has managed to maintain its level of revenue additions carried out by sanef and acesa. in the year against a backdrop marked by a major economic · Before the end of the year, abertis acquired 50% of two toll million euros and an ebitda of 1,934 million euros represent 75% roads in Chile, Autopista Central and Rutas del Pacífico, in a and 86% of the total amount of revenues and ebitda of the group, consortium and reached an agreement for the purchase from respectively. The weight of this sector has been maintained with slowdown and reduced consumer spending. Revenues of 2,756 concession operator Itínere of holdings in companies of which respect to 2007. it is already a shareholder. This latter transaction, which is Spain Direct or shared management acesa aumar iberpistas castellana Other shares Túnel del Cadí Accesos de Madrid Ciralsa aucat aulesa Avasa Trados 45 Autema Henarsa France sanef sapn masternaut (*) eurotoll (*) bet eire flow (*) Alis Routalis A’Lienor (*) Companies providing telematic geo-localisation and toll services for vehicles. Rest of world apr gco Rutas del Pacífico Autopista Central Atlantia Brisa Elqui Ausol Coviandes RMG 22 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information France In France, abertis has a presence by means of the French Likewise sanef has holdings in a number of companies which concessionaire group sanef in which it has a majority stake of deliver telematic services: 52.57%. sanef is to manage up to 2028 1,743 kilometres of toll · masternaut, a leading company in France in the geo- roads through two concession operators, sanef in north-west localisation of vehicles. The company manufactures and France and sapn in Normandy, which accounts for 21% of the markets communication systems intended for the tracking and French network. As such it participates in a non-majority way in management of vehicles based on satellite localisation two concessions in France with a total of 275 km. technology (GPS), transmission of GSM/GPRS data and sanef’s network has an excellent position in the centre of economic internet. Europe, connecting with five great European capitals (London, · eurotoll and bet eire flow deliver electronic toll services in Brussels, Luxemburg, Frankfurt and Strasbourg) and managing five France and free flow electronic toll collection systems in Ireland of the seven toll road access routes to the Îlle de France (Paris) respectively. eurotoll is leading a project to develop interoperable region. electronic toll collection in Europe for heavy vehicles, after having carried out a pilot test on a 3,500-kilometre route along the toll roads of seven countries, (France, Germany, the Czech Republic, Switzerland, Austria, Italy and Spain). 23 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information Direct or shared management Company % holding Km. Concession end sanef 52.55% (*) 1,375 eurotoll (**) 100.00% sapn masternaut (**) bet eire flow (**) 99.97% 96.58% 80.00% 368 1,743 2028 2028 (*) abertis has a 52.55% stake in sanef, which has holdings in the other companies (**) Companies providing telematic geo-localisation and toll servi- ces for vehicles to revenue from tolls, service area charges and telecommunications and engineering services, operating revenues also include income from telematic services, which in 2008 has received a boost from greater activity on the part of masternaut and eurotoll, the integration of Webraska and the start up of operations at bet eire flow. Toll revenue comes to 1,259 million euros and is up by 1.4% in spite of a decline in traffic (-1.6%) due to a rise in average rates resulting from the annual review (+1.5%) and other structural effects of optimisation between sections and other factors. Changes in levels of activity reflect the economic slowdown, an increase in the price of oil in the first half of the year, the impact of the TGV on the A4 (Paris-Strasbourg) and poor weather in June and July across the network and especially in August in the sapn network. % holding Km. Concession end 35.00% 19.67% 150 125 150 2065 2067 The percentage of heavy vehicle electronic toll collection transactions stood at 69% in December, after the first anniversary of the introduction of electronic toll collection for heavy vehicles in the previous May. At the end of 2008 electronic toll collection transactions as a percentage of total vehicles came to 33% which is an annual increase of 9.5 points. Other shares Company A'Lienor Alis Financial and business results Revenues generated from direct-managed toll road concessions in In France some 140 million euros have been invested in renewal and modernisation of the existing network (in renewal of toll France have reached 1,390 million euros and represent 38% of collection areas, miscellaneous maintenance and resurfacing work) abertis’s total operating revenues. and another 92 million euros on new lanes, new structures and contributions to the building of the A65 (Langon-Pau), a motorway Operating revenues from the French concession increased by 2.9% under construction that has been awarded to A’Lienor. and the ebitda by 1.1% with an ebitda margin of 64%. In addition ADT sanef sapn Total ADT 2008 22,743 27,462 23,741 Var % -1.6% -1.6% -1.6% IFRS profit and loss (millions of euros) Operating revenues EBITDA EBIT 2008 1,390 888 603 Var % 2.9% 1.1% 0.3% 24 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information Significant events In the course of the year work has begun on widening the A13 vehicles to go past the barrier at 30 kilometres per hour thus motorway with a third lane between Beuzeville and Pont-l’Evêque, cutting down on waiting times at tolls. After a test period in 2007 a section covering 14 kilometres, with an investment of 80 million at Hordain (A2), sanef has brought in this system in 2008 on the euros planned for 2009. Paris-Lille (A1), Paris-Valenciennes (A2) and Paris-Reims (A4) routes. Likewise, in August 2008 sanef implemented free flow electronic A’Lienor, in which sanef has a 35% stake, has started work on tolls on the M50 in Dublin through its subsidiary bet eire flow, building a new motorway, the A-65, which is to link up the towns thus ramping up its leadership in the use of this system in Europe. of Langon and Pau in the south of France and which was awarded in June 2007. It is a motorway that is 150 kilometres long in the In January 2009 a contract in Slovakia was awarded to a consortium south of France which is set to come into service in 2010 and featuring sanef to bring in a charge collection system for heavy whose concession ends in 2065. vehicles throughout the country (2,000 km). The system is set to come into service on 1 January 2010 with a 13-year operation In order to offer greater fluidity and enhanced service, sanef drives term. and develops new toll solutions with free flow electronic toll collection, a fast electronic toll collection service which enables In order to offer greater fluidity and enhanced service, sanef drives and develops new toll solutions with free flow electronic toll collection 26 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information Spain In Spain, abertis is the largest toll road operator in terms of kilometres managed (more than 1,500 kilometres of toll roads) which is 52% of the total of toll roads in the country. As such it participates in a non-majority way in a series of concessions with a total of 230 km. 27 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information Direct or shared management Company % holding Km. Concession end acesa 100.0% Montgat-Palafolls (C-31 / C-32) La Jonquera - Barcelona - Tarragona (AP-7) Zaragoza - Mediterráneo (AP-2) aumar 100.0% Tarragona-Alicante (AP-7) Sevilla-Cádiz (AP-4) iberpistas 100.0% Villalba-Adanero (AP-6) castellana 100.0% Villacastín-Ávila (AP-51) aucat aulesa Avasa San Rafael-Segovia (AP-61) 100.0% Castelldefels-El Vendrell (C-32) 100.0% León-Astorga (AP-71) 50.0% Bilbao-Zaragoza (AP-68) Trados 45 50.0% Tramo II (M-45) 49 277 216 374 94 70 23 28 47 38 294 15 1,524 2021 2019 2031 (*) 2031 (*) 2039 2055 2026 2029 (*) The concession period may be extended until 2036, depending on the traffic for the years 2015 to 2019 Other shares Company % holding Km. Concession end Túnel del Cadí 37.2% Túnel del Cadí (C-16) Accesos de Madrid 35.1% Madrid-Arganda del Rey (R-3) Ciralsa Autema Henarsa Madrid-Navalcarnero (R-5) 25.0% Circunvalación de Alicante 23.7% Sant Cugat-Manresa (C-16) 22.5% Madrid-Guadalajara (R-2) 30 32 29 29 48 62 230 2023 2049 2040 2037 2024 28 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information Financial and business results Revenues generated from direct-managed toll road concessions in In the course of the year investment in electronic toll payment Spain reached 1,335 million euros and represented 36% of devices has continued and at present the use of this system on toll abertis’s total operating revenues. roads in Spain as a whole comes to 32.3%, 3.7 percentage points more than last year. In acesa and aucat, where this system has In 2008, the drop in activity on Spanish toll roads (-6.6% ADT) led already been in operation since 2003, the percentage of to a fall in revenue which in part has been made up for by the transactions for electronic toll collection reached more than 35%, annual rise in rates. The ebitda margin is 78%. and in other concessionaries, where this system entered into service The major slowdown in the economy has been the major cause of 31%, and in all cases an increase is anticipated in the next few at the beginning of 2005, penetration levels are between 14% and the fall in ADT by -6.6% in 2008 with respect to the previous year. years. However, there have also been other factors which have had a negative impact such as an increase in the price of oil in the first In 2008 Spanish toll roads have made operational investments half of the year, the occasional negative impact of opening parallel coming to 65 million euros, basically for improvements in toll roads on aumar (without aumar the ADT for abertis Spain would collection areas, adaptation of tolls and information systems and go from -6.6% to -5,0%), the road hauliers strike in June and the for repairs to bridges and viaducts. good weather in the first quarter of 2007 compared with the poor weather in May, June and September 2008. IFRS profit and loss (millions of euros) Concessionary ADT 2008 Var % Operating revenues Var % Ebitda Var % Ebit Var % acesa aumar iberpistas castellana aucat aulesa Avasa 35,062 -5.3% 22,742 -10.2% 29,765 6,393 31,331 5,347 14,620 -5.8% -1.4% -8.0% 4.4% 0.1% Trados45 59,600 -17.2% 646 357 123 9 103 7 77 13 -0.5% -7.5% -3.6% -3.7% -5.2% 5.6% 1.1% 4.5% 494 285 94 2 84 5 61 12 26,329 -6.6% 1,335 -3.0% 1,037 -2.3% -11.0% 2.3% -9.7% -8.6% 45.3% -3.4% 4.7% -4.9% 405 224 76 -14 70 1.0% -12.2% 2.3% 19.0% -10.7% 2 194.3% 45 8 -0.7% 6.5% 816 -4.0% 29 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information Significant events abertis Spanish toll roads continued to undertake investment · In the centre of the Peninsula, work on remodelling and projects with respect to network expansion: improving tunnel II at Guadarrama has been completed. This has turned the AP-6 motorway (iberpistas-castellana) into · In the course of 2008, work has continued on the project to the first road infrastructure in Spain which has a system of extend the lanes of the AP-7 under the terms of the agreement three tunnels, one of them reversible depending on traffic signed by acesa with the government. 63 million euros have needs. been invested, mostly on the stretch of the South AP-7 · In 2008 approval has been given to adding a third lane in both (Tarragona) with the building of a third lane in this section directions to the AP-6 motorway, iberpistas-castellana, on virtually completed, while work has also begun on the North the 20 kilometre stretch between San Rafael and Villacastín (Girona) section. The agreement, with a total investment of 500 (Segovia) and work had begun by the end of the year. In this million euros up to 2010, will make substantial improvements case investment comes to 72 million euros and the project is to the strategic Mediterranean corridor. set to be completed in 2010. · Work on the extension of the C-32 motorway has begun with the Tordera’s river Bridge at Palafolls. Total forecast investment In December, abertis reached an agreement with Citi Infrastructure comes to 55 million euros up to 2010. Investors to buy holdings the concession operator Itínere has in a number of companies of which it is already a shareholder in both Spain and in Chile. The transaction, which is set to take place in 2009, will enable abertis to control, among other companies, 100% of Spanish concession operator Avasa and finally consolidate its position on the Ebro route which, together with the presence of the AP-7 in the Mediterranean corridor, gives it an excellent position in the north-east of the Peninsula. In the course of 2008, work has continued on the project to extend the lanes of the AP-7. With a total investment of 500 million euros up to 2010, will make substantial improvements to the strategic Mediterranean corridor. 30 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information Rest of the world abertis also has a presence in Latin America, where it operates 260 As such, abertis is present, through non-majority shareholdings, in kilometres of motorways in Argentina, Chile and Puerto Rico. Europe and South America. In Argentina it is part of the grupo concesionario del oeste (gco), In Europe, abertis has maintained its presence in two of the leading the holder of the concession for the Western Toll Road (Autopista private motorway operating companies: the Portuguese firm Brisa, del Oeste, the western route into the city of Buenos Aires) and, with a strategic stake of 14.6%, (which means it can have a pre- since December 2008, it has had a 57.7% stake in the Invin group, sence on the company’s Board of Directors) and the Italian com- the holder in Chile of 50% of Autopista Central (a 60-km long urban pany Atlantia with a holding of 6.7%. motorway in Santiago de Chile) and 50% of Rutas del Pacífico (the motorway which links Santiago with Valparaíso and Viña del Mar and is 141 km long). Direct or shared management Company apr gco Rutas del Pacífico Autopista Central % holding 75.0% 48.6% (*) 28.9% (**) 28.9% (**) Km. 2 56 141 61 260 Concession end 2027 2018 2024 2031 Country Puerto Rico Argentina Chile Chile (*) 57.6% of voting rights (**) abertis has a 57.7% stake in the Invin group, which has a 50% holding in each of the concession companies indicated Other shares Atlantia Group Brisa Group Elqui Ausol Coviandes RMG % holding 6.7% 14.6% 25.0% 31.6% 40.0% 33.3% Km. 3,413 1,378 229 119 86 74 Concession end 2038 (*) 2035 (*) 2022 2020 2023 2026 Country Italy Portugal Chile Argentina Colombia United Kingdom (*) concession end for higher relative weight concession is given 32 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information Financial and business results Revenues from directly managed toll road concessions in the rest In Argentina, Average Daily Traffic (ADT) has risen by 4.8%, which of the world have increased to 45 million euros, a 6.9% increase has led to an increase in revenue. with respect to the previous year. These figures do not take into account holdings in Chile acquired in December 2008 and which Change in ebitda has been affected by an increase in operating ex- are thus not reflected in the P&L results or in activity for 2008. penses due to inflation and in personnel expenses as a result of non-recurrent extraordinary negative impacts arising from the co- llective bargaining agreement signed in December 2006 at gco as well as additional agreements reached with the trade unions. The ebitda margin is 47%. In 2008, gco has invested 4 million euros under the terms of agre- ements with the government which mostly includes work on sec- tion IV and resurfacing of the main roadway. It also includes work on extending the mainline toll at Ituzaingó. ADT apr gco Total ADT 2008 23,120 71,210 69,449 Cons. results IFRS aggregated (millions of euros) Operating revenues EBITDA EBIT 2008 (*) 45 21 13 Var % 0.0% 4.8% 4.8% Var % 6.9% -13.7% -21.9% (*) The acquisition of the Invin group in December 2008 which therefore has no impact on the P&L results or activity. abertis has a presence in Latin America, where it operates 260 kilometres of motorways in Argentina, Chile and Puerto Rico. In Europe, abertis has maintained its presence in Brisa, with a strategic stake of 14.6%, and Atlantia with a holding of 6.7%. 33 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information Significant events In June 2008 the spin-off was completed of Schemaventotto, the Likewise, in December 2008 abertis reached an agreement with reference shareholder in Atlantia and in which abertis had a Citi Infrastructure Investors to buy stakes held by concession ope- 13.33% stake. After this operation, abertis, through its wholly rator Itínere in a number of companies in which abertis is already owned subsidiary abertis italia, ended up with a direct holding of a shareholder. After the completion of this transaction, which is set 6.68% in Atlantia to take place in 2009, abertis will have 100% control in Chile of the toll road concession operator Elqui, with 79% of Rutas del Pacífico. On 10 January 2009, the Argentinean government brought in a new In this way abertis is set to step up its presence as a leading toll rates structure which for the concession companies in which aber- road operator in Chile (430 km) with high quality assets which in tis has holdings in Argentina, gco and Ausol, entailed general in- addition improve the average life of its concessions portfolio. creases of between 53% and 55% at off-peak times and of between 100% and 105% in rush hour. The measure is the start of In May, a consortium led by abertis and made up of Citi Infras- a process of normalisation of the rate system and contractual ba- tructure and Criteria CaixaCorp won the concession for the lance for concessions. However, abertis and the Argentinean go- Pennsylvania Turnpike (801 km and a 75-year lease), with a bid of vernment are to continue talks until 30 June 2009 in order to 12,800 million dollars. However, in October, and after reviewing analyse proposals which foster the comprehensive restructuring of the schedule and in the light of world financial uncertainty and the the contracts for both concessions. position of the legislative changes required to enable the award of the final concession, the consortium decided to withdraw from the In December 2008 the consortium made up of abertis (with process. The analysis and knowledge acquired from the Pennsylva- 57.7%) and Santander Infrastructure Fund II (with the remaining nia Turnpike, as well as the work done with the State authorities 42.3%) purchased 100% of the shares of Inversora de Infraestruc- and congressmen and women and senators from the Assembly, turas, S.L. (Invinsl), the Spanish subsidiary of ACS and holder of 50% place abertis in a fine position from which to reconsider this pro- of the Chilean toll roads Autopista Central and Rutas del Pacífico. ject or others which may come up in the country at a time when appropriate conditions prevail In this way abertis is set to step up its presence as a leading motorway operator in Chile (430 km) with high quality assets which in addition improve the average life of its concessions portfolio. 34 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information 2.2 Telecommunications Infrastructures European operator, leader in terrestrial and satellite infrastructures The growth of abertis telecom in the terrestrial telecommunications infrastructures and services sector in Spain has been furthered with a Network), B21C, J-ORTIGIA (ESA) and CHORIST. The latter is based on the integration of a range of broadcasting technologies for use in advanced incident management systems for high-risk situations. decisive commitment to becoming an international benchmark Growth continues to be its main medium- and long-term goal in a operator in the satellite broadcasting sector. This position, begun in 2007 business area which is demonstrating its ability to withstand economic when it became the main shareholder in the French operator Eutelsat and financial uncertainties. In this respect, abertis telecom is to (31.4%), has been buttressed during the year with the acquisition of continue working on the analysis of opportunities in Europe in the 33.4% of Hispasat in Spain. sphere of infrastructures for radio and television broadcasting. Likewise, it will continue to seek to meet the challenges posed by technological abertis telecom has geared its growth strategy in Spain towards change in the light of the digitisation of television, its growing coverage driving and rolling out Digital Terrestrial Television (DTT) and by the end and the convergence process between the various TV broadcasting of the year it had achieved coverage of 92% of the population. This platforms: DTT, mobile TV and TV via IP. commitment to adapting and digitising its network in the light of the “analogue switch-off” set for 2010 also led to the opening of a new abertis telecom is the parent company of the telecommunications control centre at its Torre de Collserola facility in Barcelona, which it business sector and solidifies the Group’s shareholdings in this sector. uses to deliver telecommunications services that cover more than 5 Through tradia and retevisión, it has the largest network of locations million people. for the broadcasting and distribution of radio and television signals in Spain, with more than 3,200 centres throughout Spain. Hispasat, with Likewise, in the course of 2008 it has continued working on the a fleet of 5 satellites (2 of them via the public company Hisdesat), is the development of mobile telecommunications services for operators, leading operator in communications in Spanish and Portuguese. corporate networks and security and emergency networks. abertis telecom has continued to step up its R&D&I to explore the in the world, with a fleet of 26 satellites in geostationary orbit providing possibilities of emerging broadcasting technologies with national and coverage for 90% of the world’s population and offering services to international projects such as Furia (Future Integrated Broadcasting more than 3,100 TV channels and more than 1,100 radio stations. It also has a stake in Eutelsat, the leading operator in Europe and third The growth of abertis telecom in the terrestrial telecommunications infrastructures and services sector in Spain has been furthered with a decisive commitment to becoming an international benchmark operator in the satellite broadcasting sector. 35 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information Direct or shared management Company abertis telecom retevisión tradia Hispasat overon teledifusión madrid adesal % holding 100.0% 100.0% 100.0% 42.08% (*) 51.0% 80.0% 51.1% (*) includes indirect holding through Eutelsat Centres - 2,524 sites 693 sites 5 satellites - - - Other shares Company Eutelsat Torre Collserola Cota % holding 31.4% 41.8% 25.0% Centres 26 satellites - - Financial and business results The telecommunications infrastructures business sector brought in the second highest amount of revenues with 432 million euros and ebitda, 167 million euros, representing 12% and 7% of the abertis total respectively. The main factor behind the increase in revenue has been the general increase in rates for all services due to CPI reviews and an increase in broadcasting activity (increased regional DTT services and regionalisation and the analogue TV station La Sexta), and carrier and wholesale activities. Furthermore, 2008 features the inclusion of the Hispasat figures since July, which as it has an ebitda margin that is greater than other companies in the sector, has led to a greater rise in ebitda (16.7%) which has also benefited from the extraordinary negative impacts in 2007 (execution of the charge guarantee 2001 from Xfera and a one-off write-down of assets). These figures do not include the contribution of Eutelsat as it is consolidated by the equity accounting method. In 2008, 29 million euros has been invested in improving efficiency at broadcasting, replacement and operational support centres and another 124 million euros on organic growth, basically consisting of the rollout of digital TV (60 million euros) and Hispasat’s Amazonas 2 satellite, whose launch is planned for 2009 and which will reinforce Hispasat’s competitive position in Latin America. The telecommunications infrastructures business sector brought in the second highest amount of revenues with 432 million euros and ebitda, 167 million euros, representing 12% and 7% of the abertis total respectively. 36 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information No. sites 2008 3,217 No. service centres 23,812 IFRS profit and loss (millions of euros) Operating revenues EBITDA EBIT 2008 432 167 80 Var % 0.0% 29.5% Var % 9.0% 16.7% 7.9% main satellite communications bridge between Europe and America, providing coverage to 100% of the world’s Spanish- speaking market and 90% of Portuguese speakers. In 2009 Hispasat is planning to launch Amazonas 2, which will provide 64 new simultaneous space capacity carriers in orbit. Eutelsat, for its part, carried out a launch in 2008 and plans to put three more satellites into orbit in 2009. Over the course of the year abertis telecom has continued working on the development of mobile telecommunications services for operators, corporate networks and security and emergency networks with new awards in the Region of Valencia and Navarra. This business segment has recently been added to with new activities in the sphere of sea rescue services after the award of a contract by the Merchant Marine Directorate General Significant events In July 2008 abertis telecom acquired, after obtaining Cabinet and the acquisition of 80% of the Madrid-based operator of the teledifusión madrid telecommunications network, which operates approval, 28.4% of Hispasat and a few months later reinforced its local DTT licences. position as the leading shareholder in the Spanish system of satellites with the acquisition of a further 5%. In this way, and In June 2008 a memorandum of agreement was reached with TDF bearing in mind the indirect holding it possesses through Eutelsat, to acquire 65% of its stake in Axion, a TV and radio signal its total stake now comes to 42.1%. Hispasat’s current fleet broadcasting and carrier network operator which manages 549 consists of 5 satellites (3 of which are its own and 2 of which it sites, most of them being in Andalucía. The transaction is subject to operates through the public company Hisdesat), and the more than a ruling by the competition authorities and the waiver of the right 1,000 TV and radio channels broadcast make it into the leading of first refusal by Axion’s other shareholders. operator in communications in Spanish and Portuguese and the 38 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information 2.3 Airports A world benchmark operator In the course of 2008, abertis airports has consolidated its In March 2008, abertis airports completed and reinforced its position as one of the benchmark operators in the airport position in the market with the acquisition of dca. dca is a holding infrastructures sector in the world with operations at 31 airports in company with direct or indirect interests in a total of 15 airports, Europe, the US and Latin America. mostly in Mexico, but also in Jamaica, Chile and Colombia, and it During the year abertis’s airport management business saw its Pacífico (GAP), where it operates 12 airports. revenue grow with an impact on traffic brought about by the world economic crisis that was below the average for the sector. Through codad, abertis airports operates two runways at the has a particularly strong position in the Grupo Aeroportuario del Eldorado-Bogotá airport under concession. The division has focussed on the consolidation of the business and the management and integration of the Group’s corporate culture. The consolidation of a well-run and experienced structure in various It has two main assets, namely tbi and desarrollo de concesiones airport markets will enable abertis airports to explore and analyse aeroportuarias (dca). new medium- and long-term investment opportunities from national, regional and local governments or from private managers tbi, the company which was the vehicle used by abertis to enter who are disinvesting. the airport sector as a benchmark operator in 2005, manages eight international airports that it owns or has the concession for in Europe (the UK and Sweden), the United States and Bolivia. In addition it has total or partial management contracts for another seven airports, most of them in the United States. In the course of 2008, abertis airports has consolidated its position as one of the benchmark operators in the airport infrastructures sector in the world with operations at 31 airports in Europe, the US and Latin America. 39 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information Company % holding Owned airports Concession airports Management contracts tbi dca codad 90.0% 100.0% 85.0% 3 - - 3 5 15 1 21 7 - - 7 tbi participates with 90% in: Country United Kingdom (*) Sweden Florida (USA) Bolivia Georgia (USA) California (USA) North Carolina (USA) Costa Rica Owned airports Concession airports Management contracts 2 1 - - - - - - 3 1 - 1 3 - - - - 5 - - 1 - 3 1 1 1 7 (*) Includes London Luton airport concession dca has different interests in the following countries: Country Jamaica (74,5%) Colombia (33,33%) Chile (14,77%) Mexico (5,77%) Owned airports Concession airports Management contracts - - - - - 1 1 1 12 15 - - - - - 40 annual report abertis group business activities America Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information 41 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information Europe Sweden United Kingdom 42 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information Financial and business results Airport activity reached total revenues of 301 million euros in 2008, In spite of the positive trend in activity at both tbi and codad, the which represents 8% of the Group’s revenues, and an ebitda of 100 increase in revenue per passenger both in terms of traffic and million euros, 4 % of the Group’s ebitda. commercial transit at tbi and the inclusion in 2008 of the figures for dca in the P&L results, revenue in euros has remained the same There has been positive growth in activity with an increase in with respect to the previous year basically due to the negative passenger numbers registered at tbi airports of 3.6%. This has been effect of the devaluation of the pound. especially notable at Stockholm airport due to new routes run since October 2007 and at the three airports in Bolivia, above all in abertis airports maintains a policy of permanent improvement of domestic passengers, with more than 24 million passengers being the installations in aspects such as the optimisation of security handled. In codad, the number of flights increased by 7.1%. measures and the extension and improvement of commercial services for passengers, and an increase of destinations in airports At dca, there has been a slight fall in activity compared with managed through agreements with the main airlines. In the course December 2007 of -1.4% in aggregate passengers, which includes of the year 36 million euros have been invested, basically in Luton an increase of +2.0% in MBJ passengers due to new routes and new and Belfast on maintenance and increasing capacity, and in Jamaica airlines and a fall of -5.6% at GAP due to the economic crisis in (dca) on the implementation of Stage II of the airport expansion Mexico. project, which consists of improving accesses and remodelling the existing terminal. 2008 Var % Cons. results IFRS (millions of euros) Operating revenues EBITDA EBIT 2008 301 100 35 Var % 0.3% -5.1% -5.1% 10,190 5,234 1,983 1,834 2.5% -0.2% -5.5% 3.5% 2,459 24.4% 2,763 24,463 6.7% 3.6% No. of passengers (thousands): London Luton Belfast International Cardiff Orlando Sanford Stockholm Skavsta Bolivia Total no. of passengers tbi No. of DCA GROUP passengers (thousands): Montego Bay (Jamaica) Aerocali (Cali, Colombia) Santiago de Chile GAP (México) 2,996 2,385 9,015 2.0% -0.5% 8.8% 22,252 -5.6% Total no. of passengers aggregated dca 36,648 -1.4% No. of codad flights 124,536 7.1% 43 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information Significant events In March 2008, abertis airports formalised the agreement reached Over the course of the year there have also been major advances with ACS in 2007 to buy 100% of the shares of the company in other airports in the abertis airports network. Thus Jamaica Desarrollo de Concesiones Aeroportuarias (dca), as set out above. airport has completed work on extending its facilities which, at a dca is a holding company with interests in 15 airports in Mexico, total cost of 102 million dollars, will provide it with the capacity Jamaica, Chile and Colombia. required to handle all types of commercial aircraft and up to six million passengers per year. Meanwhile, Orlando Sanford has London Luton, one of London’s main airports and a strategic asset started up new routes to Canada and Brussels; Belfast to Italy and for abertis airports, has headed the table of UK airports by growth Germany; and Cardiff now has four Canadian destinations and a in passenger numbers which in 2008 came to 10.2 million (+2.5%), number in Europe. thus increasing its passenger traffic five-fold over the past ten years. The rise is the result of the launch of new routes to destinations Luton has continued with its investment policy while it is engaged such as Cyprus, Italy, Poland, Eastern Europe and Jersey, as well as in talks with the local authorities about its future expansion which more frequent flights to extant destinations. may lead to a change in and/or extension of the current concession contract. 44 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information 2.4 Car Parks Leadership and internationalisation Organic growth in the domestic market and consolidation of Madrid, and also to ramp up its presence in the management of internationalisation, mainly in Italy, Portugal and Chile, have been facilities for public and private institutions, including at hospitals the key factors during 2008 in the car park division at abertis which in Chile and Catalonia and at El Prat airport in Barcelona. through saba – the sector leader – manages 106,000 spaces (+11.2%) in 72 towns and cities with revenue of 135 million euros. Its presence in Italy has been reinforced in 2008 with the management of 13 new car parks and the building of other new saba has continued working on a more uniform process of ones. This has enabled it to build up its presence in the country to expansion domestically as well as opening up new business a total of 56 facilities with more than 26,000 spaces between them. segments connected with tenders for public highway parking and operating car parks at airports, hospitals, shopping centres, etc. saba’s commitment to delivering solutions which enhance mobility This strategy has enabled it to reinforce its presence in the centre progressive implementation of the VIA T payment system in its of the Peninsula recently with the acquisition of a car park in network of car parks. results in new technology initiatives each year, including the Country Spain Portugal Italy Chile Andorra Morocco % holding 99.4% (*) 100% 100% 100% 60% 51% No. of spaces No. of cities present 50,986 16,419 26,581 8.224 291 3,467 105,968 41 6 20 3 1 1 72 (*) abertis has a 99.4% stake in saba aparcamientos, which has holdings in the other companies Organic growth in the domestic market and consolidation of internationalisation, mainly in Italy, Portugal and Chile, have been the key factors during 2008 in the car park division at abertis 45 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information South America Europe & North Africa 46 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information saba’s medium- and long-term strategy is geared towards improving the efficiency of its current operations, a crucial factor in No. of car parks situations of economic uncertainty, and consolidating its No. of spaces 2008 Var % 183 8.3% 105,968 11.2% international expansion process which fundamentally focuses on the Mediterranean and Latin America by making the most of the consolidated presence of the abertis group abroad. No. of short-stay vehicles (millions) 51.6 -0.2% No. of season tickets 32,452 3.9% Through saba, abertis is a leading operator in Spain and one of the largest in Europe in the car parking sector. It manages 105,968 car parks which are distributed in a total of 183 operational units and IFRS profit and loss (millions of euros) is present in 72 cities in Spain, Italy Portugal, Chile, Morocco and Operating revenues Andorra, making it a reference point in the sector. Financial and business results The car park sector accounts for 4% of abertis’s operating revenues and reached 135 million euros. Its contribution to consolidated EBITDA EBIT 2008 Var % 135 51 32 3.0% -8.6% -18.4% ebitda was 51 million euros, which is 2% of the abertis total. In the course of the year, saba has carried out operational investment coming to 9 million euros mostly in management and In spite of the extraordinary capital gains brought about by the sale upkeep and maintenance of systems and software. As part of its of spaces in 2007, the inclusion in 2008 of new car parks and spaces policy of continuous improvement, major advances made by saba (with an increase in season tickets) and the rise in average rates in new health and safety technology, a field in which it is a pioneer, have made up for the slight fall in short-stay parking and average have included the introduction of the VIA-T payment system which stays. is now in use in 26 car park facilities in the Group. 47 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information Significant events In Spain, saba has reinforced its presence in the centre of the In Chile it has expanded its presence in managing car parks for country with the acquisition of a car park in Madrid with 357 public and private institutions such as the Clínica Las Condes spaces in Plaza de los Monteses (Madrid) and in Catalonia with hospital (1,260 spaces) and the Universidad Católica (2,500 the award of the car park at El Prat airport in Barcelona where for spaces). a period of three years, which can be extended on a yearly basis up to five, saba is to manage a total of 24,719 spaces for the new In Portugal, saba has won the contract award to manage four car terminal 1 and the old terminal 2. In addition in Zaragoza it has parks on the Troya peninsula (852 spaces), which are in addition to won the contract award to manage a new car park with 2,128 the 16,000 it already manages in cities like Oporto, Lisbon, Leiria, spaces, currently being remodelled, in a new complex which Viseu, Portimao and Matosinhos. combines retail and recreational facilities, housing, office space and a five-star hotel. Major events abroad include investment in Italy where saba italia has won awards to manage 13 new car parks featuring 7,723 new spaces. This means it now has a portfolio of 26,581 spaces in the main cities in the country including Rome, Milan, Verona, Trieste, Venice-Mestre, Bari and Sassari. Likewise, the company is also building new car parks which will enable it to boost its presence in the country up to 70 facilities with 33,000 spaces in total. In Italy, saba has won awards to manage 13 new car parks featuring 7,723 new spaces. The company is also building new car parks which will enable it to boost its presence in the country up to 70 facilities with 33,000 spaces. 48 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information 2.5 Logistics parks Consolidation in Spain, Portugal and Chile In 2008 abertis logística has made progress in its strategy of abertis logística will continue working mid term in the fostering a new concept in intermodal logistics parks sited in development of its expansion model in Spain, Portugal and Chile, strategic locations and connected by high capacity while also exploring new opportunities in Europe. communications links both in Spain and abroad, and which in recent years has led it to put in place projects in Spain (Barcelona, abertis logística is the parent company of the business unit which Madrid, Álava and Seville), Portugal and Chile. focuses on the promotion, development, management and use of The total surface area of abertis logística logistics parks now locations with excellent access and large areas of land which stands at 484 hectares. At the end of 2008, the company had facilitates a high concentration of logistics companies in a single logistic parks. The abertis logística parks are sited in strategic around 418,894 m2 of gross floor area in logistics facilities with area. occupancy levels at over 90%, and it continues to make progress in the construction of new projects and in its commercial activities. abertis logística will continue working mid term in the development of its expansion model in Spain, Portugal and Chile, while also exploring new opportunities in Europe. 49 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information Company % holding Logistics Parks City Total surface area (m2) Current status abertis logística 100.0% CIM Vallés Barcelona 70,000 Operational abertis logisticscenter camarma abertis logisticspark henares Madrid Madrid abertis logisticspark penedés Barcelona abertis logisticspark coslada chile logística 100.0% abertis logisticspark santiago abertis portugal logística 100.0% abertis logisticspark lisboa sevisur 60.0% Zal Puerto de Sevilla Madrid Chile Portugal Sevilla 44,000 Under construction 106,000 Under construction 142,000 107,000 Operational Operational 630,000 Under construction 1,000,000 Under construction 435,000 Operational Under construction Parc Logístic Zona Franca 50.0% Parc Logístic Zona Franca Barcelona 409,000 Operational Under construction Arasur 44.0% Arasur Álava 1,900,000 Operational Under construction 4,843,000 Other shares Company % holding Logistics Parks City Total surface area (m2) Current status Cilsa 32.0% Zal Barcelona y Zal Prat Barcelona 2,270,000 Operational Under construction 50 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information South America Chile Europe France Portugal Spain 51 annual report abertis group business activities Letter from the chairman 1. Corporate administration 2. abertis group business activities 2.1 Toll roads 2.2 Infraestructuras de telecomunicaciones 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 4. Financial and economic information Financial and business results The logistics services business unit contributed operating revenues Significant events In 2008 progress has been made in Spain with the projects to of 46 million euros and ebitda of 25 million euros to abertis, figures expand the Arasur park – which will mean a million square metres which represent 1% and 1% of the Group's totals respectively. of units – and the construction of Zal II in the Port of Seville (sevisur), awarded in 2007, which will mean a surface area of 44 hectares following investment for the full development of the 2008 Var % project coming to 60 million euros over six years. Likewise, work m2 units and offices built 418,894 4.3% on the second phase of the abertis logisticspark coslada project, % occupation units and offices 90.3% 4.6 sited in the Henares Corridor, has been completed. IFRS profit and loss (millions of euros) Operating revenues EBITDA EBIT 2008 46 25 17 Var % 93.8% 223.8% 408.2% In Portugal, in March 2008 work on building the abertis logisticspark lisbon began after the purchase in February of the company which owned the land. This is the first facility of its kind in the country, sited a mere 30 km from the capital and near the country’s main road and rail junctions. Investment set aside for the development of the park’s 100 hectares will come to 265 million euros over a period of 10 years. Likewise, the viability of the river and rail connection for the park is being analysed which will bring significant added value to the new facility. The first unit is set to be In 2008, revenue has included capital gains from the sale of Port marketed in 2011. Aventura and revenue obtained from the assets bought from Colonial on 31 December 2007 (Penedès and Coslada I). The rise in In Chile, the first urbanisation studies and projects for the future average occupancy over 2007 (from 85.7% to 90.3%) has mostly abertis logisticspark santiago, in the Santiago de Chile been due to the increase in occupancy at Arasur, whose first stage Metropolitan Region, have been carried out. This project features a came into service in September 2006 and which in 2007 and 2008 forecast total investment of 186 million dollars to be put in place has signed major leasing contracts to achieve an occupancy level over forthcoming years and which provides for the building of by December 2008 of 85.2% (up from 38.1% in 2007). 350,000 m2 of warehouses and more than 15,000 m2 of corporate As this is a sector that is being developed and which has projects services facilities. that are still in the construction phase, the main investments made In January 2009, and with the aim of combining marketing capacity in this sector in 2008 were for expansion projects, for a total of 65 and efforts, abertis logística and the Port Authority of Barcelona million euros. signed an agreement to activate a joint project designed to promote and develop logistics activities in Catalonia and its sphere of influence through the company Consorci de Plataformes Logístiques. 3 Letter from the chairman 1. Corporate administration 1.1 Corporate administration 1.2 Administrative bodies Board of Directors Delegated monitoring bodies Senior management Toll road business Diversification Business 2. abertis group business activities 2.1 Toll roads 2.2 Telecommunications Infrastructures 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 3.1 abertis’ CSR Strategic Plan 3.2 Summary of Indicators 2008 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market 4 10 10 11 11 11 12 12 12 16 21 34 38 44 48 54 54 57 60 60 66 68 54 annual report corporate social responsibility Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 3.1 Strategic Plan 3.2 Summary of Indicators 2008 4. Financial and economic information 3.1 Strategic Plan Corporate social responsibility and abertis abertis uses the concept of bringing the world closer to A cross-cutting vision of 2008 The Corporate Social Responsibility Report (www.abertis.com) summarise the corporate message with which it seeks to convey its contains an account of the CSR actions taken by abertis in the mission, vision and values to society. course of the year. Mention should be made of the most important which offer a general cross-cutting overview of CSR practice in the abertis builds Corporate Social Responsibility (CSR) into the core Group. of its strategy and defines its commitment to its stakeholders in the vision and values of the organisation. These intangible factors · In the light of the scope of CSR and given the proliferation of add to the mission of the company and are reflected in its Strategic numerous specific organisations for each field of action, abertis CSR Plan. has moved forward in lockstep by taking part in initiatives which make a strategic contribution to its progress in the field of CSR. In 2003 abertis mapped out its Strategic CSR Plan, which is divided into eight strategic lines and features more than sixty actions geared towards each of its lines of business and the corporation in general. Later on it set out its CSR policy in a public document and in 2007 it finalised and distributed its code of conduct to all employees in the group and extended it to cover suppliers, customers and government. Inside abertis’s corporate organisation, the Corporate Social Responsibility Committee is the body which brings together all issues connected with the Strategic Plan and identifies the new opportunities and risks in this field. The Committee, made up of the CSR coordinators at each company in the Group, met twice in 2008 and also kept in constant contact using other, more operational means of communication. MISSION VISION STRATEGIC CSR PLAN To be a benchmark operator in the infrastructures sector To meet the needs of transport and telecommunications infrastructures by combining customer, shareholder and employee satisfaction with social development VALUES Credibility, customer service and efficiency, being proactive, responsibility, dialogue and partnership and trusting in people 55 annual report corporate social responsibility Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 3.1 Strategic Plan 3.2 Summary of Indicators 2008 4. Financial and economic information In 2008 abertis has chaired the Corporate Reputation Forum (CRF), · Fostering equality of opportunity for personnel at abertis, toge- which has sought to share and publicise the knowledge acquired in ther with improved internal communication, employee integration, its research projects. The CRF has been appointed as one of the training for professional development, enhanced health and safety business sector representatives on the State Corporate Social at work measures and retaining talent are the core aspects in Responsibility Council, an advisory body for the Ministry of human resources policy at abertis. Employment and Immigration set up towards the end of 2008. As a result of the survey carried out among all group employees, an action plan has been mapped out for the period 2009-2011 which · The institutionalisation of CSR at abertis has been made possible will implement the most significant initiatives. Furthermore, its thanks to the identification of stakeholders who are strategic for executive development programme and competency-based the corporation. A smooth relationship is maintained with them by management model have been used to set out a number of means of numerous channels for dialogue and communication in processes which ensure talent retention and employee promotion. order to meet their expectations and forge partnerships. This year abertis has run a survey to find out the priorities of its strategic · The increase in customer satisfaction reflects continuous efforts to stakeholders and evaluate the material aspect of the content enhance product quality, as can be seen in the increase in the per- included in its corporate social responsibility report. centage of quality management systems in place at the abertis group and the mapping out of policies designed to evaluate and · The mitigation of climate change has been identified as a major improve this satisfaction. economic opportunity. As a result, abertis has expanded the use In the course of 2008 a total of 1,244 suppliers have been assessed of renewable energies in its facilities, increased the percentage of based on environmental and social standards, and once more the waste it recovers, and built ecological efficiency standards into the number of tenders which feature built-in environmental and social construction of its logistics infrastructures. standards has been increased. In line with abertis’s environmental policy to implement and achieve certification for environmental management systems · The drawing up of the community commitment handbook has across the Group, the number of business units which have an systematised the award of abertis group sponsorship by ensuring environmental management system has been increased. In addition the transparency and strategic relevance of the projects concerned. other new agreements with third sector organisations have been In the second half of 2008, 59 projects have been presented, of developed to minimise the impact of abertis’s activities on which 33 have received support based on the principles set out in biodiversity. the handbook. In 2008 abertis has continued with its commitment to the · abertis's firm commitment to its investor community has led to academic community through the chairs set up in leading a reinforcement of its dividends policy in addition to continuous institutions: the Universitat Politècnica de Catalunya (UPC), the fostering of transparency and a two-way relationship with its Fundación de Estudios de Economía Aplicada (FEDEA) and IESE and shareholders. ESADE business schools. Meetings with financial analysts, fund managers and institutional investors, in addition to the consolidated success of its Próximo Programme, have earned for abertis the Information Transparency Award presented by the Institut d'Estudis Financers and recognition by Institutional Investor as one of the best companies in Spain and in the infrastructures sector in terms of its relationship with its investors. 56 annual report corporate social responsibility Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 3.1 Strategic Plan 3.2 Summary of Indicators 2008 4. Financial and economic information A benchmark in social action: the abertis foundation As part of its corporate social responsibility, abertis has a strong - Carrying out studies into infrastructures and nature areas which commitment to society which is channelled through the abertis analyse issues such as the impact of tourism on the Antarctic, the foundation. This organisation fosters studies of the impact of use people make of the large Collserola metropolitan park in major infrastructures on the ground in order to ensure that they Barcelona and the Foix Park environment. are harmoniously integrated into their settings and generate - The publication of some of these research projects and books such positive impacts for the public and the economy. as Viator dealing with the natural and artistic heritage to be found In order to achieve this goal, the foundation structures all its - Support for museums and other hallmark centres and their activities into four main areas: road safety, fostering research, contribution to art and culture. spreading knowledge and support for the arts, culture and historical In addition in 2008 the foundation has started up its international heritage. operations with the opening of a country office in Italy which is to around Spain’s motorways. come into service in 2009. In the course of 2008, the foundation has continued to operate in these four areas with a raft of initiatives including the following: The abertis foundation, which will celebrate its tenth anniversary - The Road Safety in Schools Programme, which ended in June and Penedès in Catalonia, a building of enormous historical value due will have follow through with a dedicated web portal addressed to to the archaeological remains it houses. As a result of its sustainable teachers, parents and students. management, the castle obtained ISO UNE 14.001:2004 - Holding the ‘Responsible Mobility. Values on the move’ environmental certification in 2008. in 2009, is headquartered at Castellet castle in the county of l’Alt conferences in Madrid and Valencia. 57 annual report corporate social responsibility Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 3.1 Strategic Plan 3.2 Summary of Indicators 2008 4. Financial and economic information 3.2 Summary of Indicators 2008 CSR STRATEGY AND MONITORING Meetings of the CSR committee Indicators compiled ENVIRONMENT Turnover with environmental management system in place Tons of CO2 (per million euros of turnover) Use of ETC (percent of total transactions) Waste recovered (percent of total waste generated) Estimated annual production of photovoltaic solar energy at the PLZF in Barcelona Increase in use of biodiesel Investment Environment (respect to the consolidated net profit) INVESTOR COMMUNITY Increase in amount received by shareholders Opinions and queries from shareholders dealt with Attendees at Próximo Programme events HUMAN RESOURCES Women in workforce (percent of total workforce) Workers on permanent contracts (percent of total workforce) Increase in spending on training Average training hours per employee Turnover with health and safety at work system in place Disabled workers hired (directly and indirectly) CLIENTS Turnover with quality system in place Level of achievement of annual goals Customer satisfaction index Queries, complaints and suggestions dealt with SUPPLIERS Increase in number of suppliers assessed using social and environmental standards Increase in number of tenders including social and environmental clauses COMMUNITY Contribution to the community (consolidated respect to turnover) Investment in social accessibility and socioeconomic development (respect total investment) Investment in community projects as LBG 2 270 75% 56 Tn 26% 92% 155,884 Kwh 553.81% 2.57% 15% 2,930 321 29% 73.2% 3.6% 23.4% 68.1% 2.57% 91% 88% 75% 98.7% 195.47% 16.57% 1.34% 51 54% 4 Letter from the chairman 1. Corporate administration 1.1 Corporate administration 1.2 Administrative bodies Board of Directors Delegated monitoring bodies Senior management Toll road business Diversification Business 2. abertis group business activities 2.1 Toll roads 2.2 Telecommunications Infrastructures 2.3 Airports 2.4 Car Parks 2.5 Logistics parks 3. Corporate social responsibility 3.1 abertis’ CSR Strategic Plan 3.2 Summary of Indicators 2008 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market 4 10 10 11 11 11 12 12 12 16 21 34 38 44 48 54 54 57 60 60 66 68 60 annual report financial and economic information Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market 4.1 Consolidated figures Resultats (millions of euros) Operating revenues Operating expenses EBITDA Amortization Operating results Financial result Equity method company results Before-tax results Corporate Tax Yearly results Minority interest Minority interest Results 2008 3,679 (1,424) 2,256 (807) 1,448 (548) 79 979 (294) 685 (67) 618 2007 3,620 (1,351) 2,269 (785) 1,485 (539) 100 1,046 (290) 756 (74) 682 Var 2% 5% -1% -2% -6% -9% -9,4% The profit results for abertis in 2008 were 618 million euros, a de- If the effect of this non-recurring impact of 2008 is not taken into crease of -9.4% over the previous year. consideration, the consolidated result from the financial year attri- Results (millions of euros) Operating revenues EBITDA EBIT 2008 3,679 2,256 1,448 2007 3,620 2,269 1,485 Var 2% -1% -2% Profit due to shareholders 618 682 -9.4% butable to shareholders decreased only by -5.1% in comparative terms. Change in the consolidated result is basically due to the impact which the change in the economic cycle has had in particular in the toll road sector, mitigated to an extent by positive trends in other areas resulting from the policy of sector and geographical di- versification put in place by abertis over recent years. In addition there has also been a slight increase in the negative financial result due to new acquisitions and a decline in the contribution from For comparative purposes it should be noted that in 2008 a non- companies consolidated by the equity accounting method (mainly recurring negative impact of -29 million euros was registered due due to the non-inclusion of Atlantia’s results, which since 30 June to a change in Corporate Tax in the United Kingdom which invol- 2008 has been classified as a financial investment). ves the progressive phasing out of the current industrial buildings allowances. 61 annual report financial and economic information Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market +2% 3,620 3,679 4.000 3.500 3.000 2.500 2.000 1.500 1.000 500 0 -1% 2,269 2,256 -2% 1,485 1,448 -9.4% 682 618 -5.1% 682 647 Operating revenues EBITDA EBIT Profit due to Shareholders Comparable shareholder profit 2007 2008 Revenues Operating revenues came to 3,679 million euros, which is a +2% rise over the preceding year. This increase is due mainly to the po- sitive trend in sector and geographical diversification activities, up- ward price reviews and the consolidation of the figures for DCA and Operating revenues (millions of euros) Toll roads 2,755 75% 2,751 76% 2008 2007 Hispasat in the P&L results for 2008, which have made up for worse Telecommunications 431 12% 396 11% activity levels in toll roads, especially in Spain, and the negative im- pact of changes in the euro/pound sterling exchange rate. In general, the relative weight of the revenues generated outside Spain was maintained, in addition to the weight of the different business units. Airports Car Parks Logistic services Corporate and other services 301 135 44 13 8% 4% 1% 0% 300 131 21 22 8% 3% 1% 1% TOTAL 3,679 100% 3,620 100% Operating revenues (millions of euros) Spain France Great Britain Rest of the world TOTAL 2008 2007 1,906 52% 1,889 53% 1,379 37% 1,351 37% 203 191 6% 5% 223 157 6% 4% 3,679 100% 3,620 100% 62 annual report financial and economic information Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market Gross trading margin (Ebitda) Operating expenses are concentrated in personnel and mainte- Financial result The increase in the negative financial result is the consequence of nance of infrastructure costs and have increased by 5%, mainly due the continued expansion of the group which took place both in to greater activity in the telecommunications, logistics and airports 2008, with the acquisition of dca and a 33.4% stake in Hispasat, sectors and a greater relative weight compared to last year of te- and at the end of 2007 with the acquisition of logistics assets and lematic companies, mainly in France, which operate with a smaller the purchase of an additional 4.6% of Brisa. margin. Hence the Ebitda margin stands at 61.3%, slightly down on 2007. Equity method companies The results of companies consolidated by the equity accounting me- The average number of employees in 2008 reached 11,894. thod were enhanced by the positive performance of Eutelsat over the course of the year, even though there was a fall compared with 2007 mainly due to the fact that since 30 June 2008, the 6.68% hol- ding which abertis has in Atlantia (through the wholly owned com- pany Acesa Italia, S.r.L), has been classified as an available-for-sale financial asset. Corporate Tax In 2008 a reduction in the Corporate Tax rate in both Spain and in the United Kingdom, down from 32.5% to 30.0% and from 30% to 28% respectively, has led to a fall in current expenditure under this heading. However, this impact has been counterbalanced by the progressive phasing out of the industrial buildings allowance in the United Kingdom, which has led to a non-recurring extraordinary tax cost of -29 million euros in 2008. Cash flow In 2008, abertis generated a net cash flow (before investments and dividends) of 1,417 million euros, in line with the figure for the pre- vious year and changes in Ebitda. Net cash-flow (millions of euros) Net cash-flow 2008 1,417 2007 1,421 Var 0% EBITDA (millions of euros) 2008 2007 Toll roads 1,934 86% 1,994 88% Telecommunications Airports Car Parks Logistics services 167 99 51 25 7% 4% 2% 1% 143 105 56 8 6% 5% 2% 0% Corporate and other services -20 -1% -37 -2% TOTAL 2,256 100% 2,269 100% EBITDA (millions of euros) Spain France Great Britain Rest of world TOTAL 2008 2007 1,246 55% 1,256 55% 895 40% 878 39% 58 57 3% 3% 68 67 3% 3% 2,256 100% 2,269 100% Amortisation and impairment of assets The rise in amortisation is due above all to the consolidation of the new acquisitions made over the course of the year. The operating revenues under IFRS were not amortised systemati- cally, although they did depreciate, based on the result of the de- preciation tests which had to be carried out on them. The results of these tests on existing operating revenues in the abertis group have not led to the need to carry out any form of adjustment. 63 annual report financial and economic information Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market Balance Assets consolidated (millions of euros) Non-current assets Fixed assets Liabilities consolidated (millions of euros) 2008 2007 20,994 19,762 Equity 10,239 9,795 Capital Reserves Results Goodwill and other intangibles 7,561 6,688 Holdings in associated companies 1,340 1,711 Other non-current assets 1,853 1,568 Minority interest Non-current liabilities Debt Other non-current liabilities Current assets 1,227 1,065 Current liabilities Debt Other non-current liabilities Total assets 22,221 20,828 Total liabilities Assets Liabilities 2008 4,779 2007 5,020 1,748 1,853 1,006 1,356 618 682 1,406 1,129 14,651 13,298 12,751 11,643 1,900 1,655 2,791 2,510 1,607 1,230 1,184 1,280 22,221 20,828 64 annual report financial and economic information Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market The balance reflects the effect of the incorporation of new compa- nancial year a major part of debt (around 80%) was at a fixed rate nies in the Group in 2008: the full consolidation of DCA, the pro- or fixed through hedging. portional consolidation of Hispasat and the incorporation by full consolidation of Invin with accounting effect as of 31 December (impact on balance sheet figures mostly due to the proportional Investments The most significant investments in expansion in the year were as consolidation of Rutas del Pacífico and Autopista Central). Likewise, follows: the share in Atlantia disappears from equity method shares as it In the toll road sector, in December 2008 the acquisition for 420 has been reclassified as an available-for-sale financial asset. million euros of a 57.7% stake in Spanish firm Inversora de In- Total assets as of 31 December 2008 came to 22,221 million euros fraestructuras, S.L. (Invin), owner amongst others of the Chilean which is a 7% increase over the previous year. Some 60% of total concession operators Autopista Central (50%) and Rutas del Pací- assets consists of tangible fixed assets and other intangible assets fico (50%), was finalised. There was further expansion in the toll (excluding goodwill), basically concessions, in line with the nature road sector in the shape of investments by Sanef to expand capa- of the Group’s businesses connected with infrastructure manage- city (new lanes and the start of construction works on the Langon ment, a percentage figure which is in line with the one for the pre- – Pau (A65) motorway), by acesa mostly to add lanes to the AP-7 vious year. motorway, and by Castellana on finishing works on the project to add a third lane and third tunnel at Guadarrama. Consolidated stockholder’s equity came to 4,779 million euros, - 5% down on the previous year mostly due to the impact of the net In the telecommunications infrastructures sector, expansion inves- capital loss registered in those financial investments which have to tment entailed the acquisition of a direct 33.38% stake in be valued at mark-to-market, the impact of translation differences Hispasat at a cost of 262 million euros and an 80% holding in and the acquisition of own shares. teledifusión madrid. The remaining investment in expansion was mostly geared towards extending DTT coverage and investment at The increase in gross indebtedness of 1,485 million euros is basi- Hispasat. cally due to the financing of investments over the course of the year, partially counterbalanced by the cash-flow generated in the In the airports sector the acquisition for 276 million euros of 100% financial period. Gross debt accounts for around 65% of liabilities of desarrollo de concesiones aeroportuarias (dca) has been and stockholders’ equity, a figure which is in line with or lower than completed. The remaining investment in expansion in the airport other large international infrastructures operators. In line with the sector corresponds to tbi, mainly at Belfast and Luton. policy of minimising exposure to financial risk, at the end of the fi- Investments (millions of euros) Investments Toll roads Telecom Airports Car Parks Logístics Holding/Serviabertis Total Operational 205 29 15 9 5 13 % 74% 11% 5% 3% 2% 5% Growth 612 386 297 69 65 0 % 43% 27% 21% 5% 5% 0% 276 100% 1,428 100% 65 annual report financial and economic information Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market The investment in expansion in car parks is mainly due to the ex- The investment in expansion for 2008 does not include the pur- pansion of saba Italia and the acquisition and upgrading of a car chase from Ítínere of a number of toll road concessions in Spain park in Madrid. and Chile for an approximate total amount of 621 million euros. It is awaiting formalisation in 2009. Turning to investment in expansion in logistic parks, of note is the purchase of land for the development of the future Lisbon logistics park which is under construction at present. The most significant operating investments took place in the sec- tor of toll roads, above all at sanef, acesa and aumar which toge- ther account for a total of 2,753 kilometres out of the 3,527 kilometres in the abertis group network, and came to 180 million euros. The investments have mostly been undertaken in terms of the renewal of tolls, safety barriers and the modernisation of the existing network. In 2008 abertis invested more than €1,400 million in expansion projects (Chile motorways, DCA, Hispasat) in line with its strategy of sector and geographical diversification and current policy of consolidating and reinforcing positions in assets in which the Group already has a stake. 66 annual report financial and economic information Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market 4.2 Financial management Financial structure / Financing policy The financial structure in 2008 maintained a profile highly similar In 2008 abertis has continued to consolidate its growth over recent to that of 2007. Precedence is still given to non-banking finance in years. The Group’s net debt amounted to 13,560 million euros the long-term as it allows ample room for manoeuvre among the compared to 12,510 million euros in 2007. financial bodies in order to undertake new purchases or projects where bank finance is only more flexible at first. At the end of 2008 The increase of 1,084 million euros in net debt is the outcome the finance obtained from non-bank sources was kept at 66%, mostly of the purchase of Rutas del Pacifico and Autopista Central, compared to 70% in 2006. the dca airports, 33.4% of Hispasat and logistics assets. Net debt (notional) Net debt /EBITDA Net debt / equity Interest cover FFO / Net interest 2008 2007 13,560 (*) 12,510 6.0 3.0 2.6 5.5 2.5 2.7 (*) Does not coincide with consolidated net debt of 14,059 million euros as it does not include IFRS accounting adjustments Financing Instruments In keeping with the policy of liquidity management and risk coverage, the purchase of shares in 2008 was financed through a loan with a “Club Deal” structure for 1,050 million euros, loan expiration after one year and the possibility of extension for an additional year at abertis’ discretion. Average debt maturity in 2008, including refinancing of the most recent acquisitions, stands at 7.47 years. In 2008 the fourth programme of issues of promissory notes for a maximum outstanding balance of 1,000 million euros with 1-year validity was registered with the Spanish Securities Market Commission (CMNV). The programmes for promissory notes have provided us access to a short-term flexible financing and with an inferior cost to that of the banking market. The total volume issued during last year increased to 596 million euros, placing the active balance at the end of the financial year at 572 million euros. 67 annual report financial and economic information Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market Debt maturity Type of debt Hedging of financial risks The Group’s activities are exposed to a range of financial risks: Liquidity Risk Prudent management of liquidity risks implies the maintenance of exchange rate risks, credit risks, liquidity risks and interest rate risks. available resources for finance through the sufficient cost of credit The management programme for the group’s overall risk considers facilities implicated and to maintain the capacity to sell market the uncertainty of the financial markets and attempts to minimise holdings. Given the dynamic character of the underlying businesses, any potential adverse affects to the Group's financial results. the objective of Corporate Financial Management is to maintain Risk of rate of exchange The Group operates in the international area and has assets in the loan capital. To this purpose, at the end of the 2008 financial year, abertis had confirmed credit lines to the amount of 1,070 million flexibility on finance through financing the availability of lines of United Kingdom, the United States, Mexico and South America, and euros. is therefore exposed to risks from exchange rates due to operations with currency, especially the US dollar, the pound sterling, the Mexican peso and the Chilean peso. Interest rate risks The objective of the management of interest rate risks is to reach a balance in the structure of the debt which allows minimising The exchange rate risk on net assets in group operations in currency volatility in the results account in a multi-annual horizon. distinct to that of the euro is managed mainly through a debt abertis manages its global exposure to interest rates through denominated in the corresponding foreign currencies and through derivatives in order to reduce the risk of variations in financial currency swap contracts. charges. These derivatives are designed, in financial terminology, as Credit risks The Group does not have significant concentrations of credit risks. instruments of cover. Operations with derivatives and operations in cash are only undertaken with financial institutions with verified credit solvency. Credit rating abertis has an A rating (investment grade-high credit quality) This credit solvency is periodically revised. awarded by international credit rating agency Standard & Poor’s Entities are only accepted which have been independently qualified for long-term debt. This rating was given in April 2008 and in an independent manner with a minimum category of an “A-” confirmed in November 2008. rating. During the financial years for which there is information available, abertis also has an A rating (investment grade-high quality) for credit limits were not exceeded and the management does not long-term debt, assigned in March 2006 and ratified in November anticipate the incurrence of losses through non-fulfilment of any of 2008, and an F1 rating (highest credit quality) for short-term debt, the opposing parties described. ratified at the same time. Both ratings were awarded by the international credit agency Fitch Ratings. 68 annual report financial and economic information Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market 4.3 Shareholders and the stock market In 2008 world stock exchanges have experienced the worst year in living memory with major losses. An example of this can be seen in Stock market performance 2008 The performance of international stock markets in 2008 has been one of the leading indexes, the S&P 500, which was down by 38.5%, a fall only seen twice before in its history in 1931 with the Great marked by the global crisis triggered by the sharp fall in the real Depression and in 1974 due to the oil crisis. estate market which began in 2007 as a result of the lack of liquidity associated with subprime mortgages and which has been In Spain, the Ibex 35 was down by 39.4%, the worst annual result followed by the financial crisis. in recent years, after having risen by 151% in the period 2003- 2007. The index was set up in 1992 and since then the year in The financial, money, credit, stock and financial instrument markets which it had previously suffered most losses was 1992 when it fell have faced liquidity and valuation tensions on an unprecedented by 28.11%. In spite of this, it has been one of the best performers scale. Their consequences have generated enormous uncertainty among the major indexes in the Euro zone. and have turned the slowdown which was already affecting the world’s leading economies into a large-scale global crisis. Against a backdrop of a generalised lack of liquidity, in 2008 the stock markets, together with central banks, have been the only providers of liquidity and hence have been affected by the consequences of the massive market sales carried out by major investors in order solve their liquidity needs. abertis on the securities market: share performance In 2008 abertis shares have also reflected the generalised fall in world markets, although they have performed better than comparable shares in the sector. The closing price was €12.60, down by 39.97% over the previous year. Annual change in the IBEX 35– abertis - Infrastructures Sector (*) 22 20 18 16 14 12 10 8 6 Dec. 07 Jan. Feb. March April May June July August Sept. Oct. Nov. Dec.08 abertis Ibex35 Infrastructures sector (*) The infrastructures sector index includes concession operators and building firms. 69 annual report financial and economic information Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market Change in abertis shares 2008 29/01 Schema- venototto spin- off agreement 01/04 JGA Ord. 12/05 Start of capital increase 14/05 1Q results 2008 11/06 Agreement to buy 65% Axión 01/10 Announces no extension Pennsylvania Turnpike bid 01/12 Agreement to acquire Itínere concessions closing (euros) 23 22 21 20 19 18 17 16 15 14 13 12 11 10 28/02 Results 2007 27/03 C.Catalunya sells share (abertis buys 1,5% in stock) 04/01 Memorandum of agreement to buy Autopista Central and Rutas del Pacifico 28/03 Finalises purchase 100% dca 01/07 Sale 2.9% Port Aventura 03/07 Finalises purchase 28.4% Hispasat 31/07 Results first half 2007 21/10 Agreement purchase 5% more of Hispasat 19/12 Formali- sation purchase Autopista Central and Rutas del Pacifico 06/11 3Q 2008 results 19/05 Wins Pennsylvania Turnpike tender 12/06 Admission bonus shares 25/06 Schemavenototto spin-off. Atlantia financial stake 11/04 Payment additional dividend 2007 28/10 Payment interim dividend 2008 January February March April May June July Aug. Sept. October Nov. Dec. Adjusted price Unadjusted price Note on price adjustments due to bonus share issue: The allocation of new shares does not affect the equity of the company, even though it is divided into a larger number of shares. All shareholders who invested before the issue receive shares without any additional outlay. The investment in their portfo- lios therefore does not change even though they own a larger number of shares. Consequently, historic prices prior to the issue have to be adjusted in order to compare pre-issue and post-issue prices. Significant changes in price this year include the fall sustained in months following this fall were marked by price stability with some May and June. This was the result of the initial market reaction with volatility as in the rest of the market. respect to the announcement that the bid submitted by the consortium made up of abertis (50%), Citigroup (41.67%) and Nonetheless, and in spite of the changes this year, abertis shares are Criteria CaixaCorp (8.33%) had been chosen as the winner of the up over the last nine years by 103%, without taking into account tender for the Pennsylvania Turnpike management contract. The dividends, which shows that this year’s fall has been absorbed and overcome by the positive trends seen in previous years. abertis: market appreciation -40% Accumulated change + 103% which absorbs the fall seen in 2008 2.9% 11.1% 2008 2007 2006 2005 2004 2003 2002 1.3% 2001 2000 1.3% 37.8% 41.9% 16.6% 26.2% 70 annual report financial and economic information Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market abertis closed 2008 with a capitalisation of 8,446 million euros All company shares are admitted to official valorisation in the (down by 40% compared to capitalisation at the end of 2007) and Barcelona, Bilbao, Madrid and Valencia stock exchanges, and are is in tenth position by weight on the Ibex 35. It is also at the top of negotiated through the Spanish stock interconnection system. The the market capitalisation ranking for the leading companies wor- abertis shares have continually formed part of the selective Ibex 35 king in the toll road sector and with which it is normally compared. index since 1992 and are also present in other notable international indexes such as Standard & Poor’s Europe 350, the FTSE Eurofirst 300, and in the world indexes and European indexes of Dow Jones Sustainability (DJSI World and DJSI Stoxx). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 6.10 7.31 9.22 11.82 11.15 10.54 11.67 7,737 28.2% 7,760 5,452 8,398 -7.8% 10,132 6,498 11,641 18.3% 11,687 9,141 9,110 -21.7% 12,817 8,864 6,037 -28.1% 8,555 5,365 10.80 8.06 1.3% 11.99 8.52 10.28 7.31 9.31 6.30 1.3% 10.61 6.84 8.38 5.40 11.99 9.39 16.6% 12.90 9.63 10.80 8.06 11.19 7.95 26.2% 11.89 8.05 9.26 6.46 9.65 6.22 -28.6% 15.21 9.34 9.60 6.19 IBEX 35 Close Annual variation High Low abertis(1) Price Close Adjusted close(2) Adjusted annual var, (2) Non-adjusted high Adjusted high(2) Non-adjusted low Adjusted low (2) Non-adjusted weighted average Adjusted weighted average (2) Volume Total Operating volume Average daily volume Equivalent percentage on all shares Cash value traded (M Euros) Daily average cash value No, shares (31/12) Market capitalisation (31/12) (M Euros) Options on abertis shares Futures on abertis shares Note: Closing highs and lows (1) Between 2002 and 2007 data corresponds to ordinary shares (formerly known as class “A”) (2) Adjustment derived from paid-up capital increases 264,975,041 278,223,793 137,047,819 146,336,403 158,556,245 292,134,982 12,181,931 1,031,608 6,389,462 5,401,374 6,679,584 9,732,570 548,191 585,346 634,225 876,720 57,736 38,028 43,793 22,637 43,731 1,597 2,433 2,557 1,670 2,590 3,269 1,350 3,045 3,333 5,853 53% 52% 53% 54% 71% 7.29 7.92 8.94 9,081 17.4% 9,101 7,578 16.20 13.33 41.9% 16.26 13.38 12.03 9.43 10,734 18.2% 10,919 8,946 21.26 18.37 37.8% 25.30 21.86 16.18 13.31 14,147 31.8% 14,388 10,666 22.50 20.41 11.1% 23.10 20.95 17.55 15.92 15,182 7.3% 15,946 13,602 22.04 20.99 2.9% 25.19 22.85 20.59 18.92 9,196 -39.4% 15,003 7,905 12.60 12.60 -40.0% 21.99 21.20 11.83 11.83 14.29 20.25 20.55 22.67 16.80 11.45 17.09 18.35 20.91 16.50 219,180,111 257,902,032 309,826,837 269,001,790 284,207,931 388,183,165 532,852,359 308,593,549 488,183,992 514,445,009 542,019,077 570,971,849 638,408,625 670,329,056 1,234,370 1,050,788 1,118,929 1,534,321 2,097,844 60% 50% 50% 64% 79% 4,211 5,440 5,825 8,806 8,797 16,775,116 21,250,912 22,932,133 34,807,805 34,632,248 8,334 11,523 12,847 14,071 8,446 37,140 29,194 35,250 86,596 114,508 50,041 20,026 71 annual report financial and economic information Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market Shareholder return abertis has based its shareholder return policy on an annual The dividend is distributed in two annual payments. In April abertis dividend in two payments, which has grown with an annual bonus paid a complementary additional dividend for the 2007 financial share issue and, in recent years, due to an increase in the dividend year of 0.28 euros per share, while in October 2008 the company per share. paid an interim dividend of 0.30 euros gross per share for 2008. Bonus share issue At the Annual Shareholders’ Meeting held on 1 April, a decision was Annual Shareholders’ Meeting 2009, to be held on 31 March, in addition to a 1x20 bonus share issue, an additional dividend for The Board of Directors of abertis agreed to propose to the Ordinary made to increase capital against reserves for a total of 95.7 million 2008 of 0.30 euros gross per share. euros through the issue and circulation of 31,920,431 new ordinary shares, at a ratio of 1 new share for every 20 held. Between 12 and This amount, added to the interim dividend paid in October, 26 May 126 million entitlements were traded at a high of 1.08 amounts to direct shareholder return in the form of dividends of euros and a low of 0.99 euros. The fair value of the entitlement was 0.60 euros gross, paid from 2008 profits, which represents an 1.01 euros. increase of 7.1% with respect to the unit quantity credited and charged to the profits of 2007 (0.56 euros gross per share). The new shares were initially listed on the market on the 12th of June, and have the same political and economic rights as existing This dividend will represent a total maximum amount for the shares of the same class, granting their holders the right to a payment of this year of 402.2 million euros, which is an increase of dividend on profits obtained as of 1st of January 2008. 12.5% with respect to the total quantity credited in 2007, taking into account the 5% increase in the number of shares derived from the bonus share issue. Dividend abertis attaches prime importance to the dividend paid to its This dividend means that the pay-out (percentage of profits set shareholders, and especially in times such as the ones being aside to pay dividends) comes to 65% of consolidated earnings experienced now. It is one of the attributes of the return that marks imputed to abertis (52% in 2007), calculated on the profit per share our securities and is based on confidence in generating recurring in the 2008 financial year and taking into account the final number profits which make it possible to maintain shareholder of shares in circulation. Likewise, the profitability per dividend for remuneration as an addition to a selective and rigorous investment the shareholder over the closing share price in the financial year policy which generates added value for our shareholders. 2008 has risen to 4.8%. Charged to 2008, the total amount to be received by abertis shareholders (additional dividend, bonus shares and interim dividend) has risen by 14.8% compared to 2007. 72 annual report financial and economic information Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market Dividend per share (euros) Reinforcement of dividend distribution policy 0.45€ +6% 0.48€ 0.50€ +4% +0% 0.50€ +12% 0.56€ +7% 0.60€ CAGR: +5.8% (CAGR with capital increase +11.1%) 2003 2004 2005 2006 2007 2008 Return over the decade The graph below shows the stock return of the abertis share over For example, an investor who invested 14.18 euros purchasing an abertis share at the end of 1998 (an investor who participated in the last decade in different theoretical times of purchase and sale the successive bonus share issues and taking into account the of the share. The return of the abertis share is compared with the dividends paid), on the 31st of December 2008 would have a Ibex 35. The intersection indicates the return obtained by the portfolio to the value of 20.52 euros and would have been paid abertis and the market, respectively for the selected period (year of 6.28 euros for dividends, which results in accumulated profits of entry and exit). 89.0%. 1999 -25.3% 18.3% 2000 -21.0% 2002 2001 6.6% 1.6% -7.4% -14.6% -38.6% 37.7% 44.7% 6.1% -21.7% -27.9% -48.1% 38.1% 31.2% -7.8% -33.7% 5.5% -28.1% ) 1 ( y r t n e f o r a e Y 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Year of exit (1) ABE Ibex-35 ABE Ibex-35 ABE Ibex-35 ABE Ibex-35 ABE Ibex-35 ABE Ibex-35 ABE Ibex-35 ABE Ibex-35 ABE Ibex-35 ABE Ibex-35 9.1% 2006 2005 21.5% 43.8% 30.4% 68.5% 55.3% 8.1% 27.8% 2004 2007 75.3% 137.9% 166.5% 178.8% 54.3% -7.7% 2008 2003 89.0% 25.9% -21.3% -6.5% 71.7% 140.8% 228.5% 268.5% 285.8% 160.0% -33.5% -22.0% -7.8% -21.0% 64.8% 132.9% 219.6% 259.0% 276.1% 151.9% 0.9% -15.1% 95.7% 26.6% 9.5% -7.9% 89.0% 20.9% 52.3% 28.2% 58.5% 18.9% 9.0% 1.3% -23.2% -14.3% -33.1% -35.0% -37.3% -39.4% -0.3% 17.8% 66.7% 80.6% 149.3% 180.5% 194.1% 80.8% 74.2% 141.9% 172.8% 186.1% 50.4% 77.8% 134.3% 151.5% 45.7% 103.8% 130.3% 141.8% 96.2% 17.4% 38.7% 67.7% 41.0% 67.2% 18.2% 19.4% 41.4% 5.3% 7.3% 82.8% 59.6% 55.8% 13.5% 31.8% (1) Entry and exit on the last day of the indicated year. Market appreciation is considered as are bonus share issues, and dividend yield. The possibility that the shareholder may have made additional outlays is not accounted for. 73 annual report financial and economic information Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market The performance of the abertis share during the period has been superior to that of the market. Distribution of capital ownership at 31/12/08 Share capital and treasury share portfolio abertis share capital rose to 2,011 million euros by the 31st of December, made up of 670,329,056 shares that are entered in the share register at a nominal value of 3 euros each, fully subscribed and paid up. In 2008, share capital increased by 31,920,431 shares, amounting to an increase of 95.7 million euros, corresponding to the bonus share issue. With respect to treasury stock, at the end of 2008 abertis was the (1) Company controlled by Caixa d'Estalvis i Pensions de Barcelona direct holder of 13,382,267 shares which accounts for 1.996% of share capital, compared to the 3,246,459 shares it held in 2007 (0.509% of share capital at the end of that year). Criteria CaixaCorp, S.A. (28.91%), ACS, Actividades de Construcción This increase arises from the purchase of 9,576,000 own shares in March which accounted for 1.5% of company equity. As was There have been changes in shareholder percentages at abertis reported to the Spanish Securities Market Commission (CMNV) at with respect to year-end 2007. y Servicios, S.A. (25.83%) and Sitreba, S.L. (5.50%). the time, abertis’s purpose is to hold these shares as treasury stock on a temporary basis. The most significant changes to have taken place are headed by the sale in March 2008 of the 5.5% stake held by Caixa d’Estalvis abertis shareholder structure abertis shares are bearer shares, as a result the company can not de Catalunya, which was acquired by Criteria CaixaCorp, S.A (3%), ACS, Actividades de Construcción y Servicios, S.A. (1%) and by maintain a shareholders record. For this reason the company does abertis (1.5%) for its treasury share portfolio. not know its shareholder structure with exactness beyond the position of the shareholders which it can request from IBERCLEAR After this purchase from Caixa d’Estalvis de Catalunya, Criteria at the time of the General Shareholder's Meeting, the CaixaCorp, S.A. holds 28.91% and ACS, Actividades de Construcción communication that its own shareholders could make at the time y Servicios, S.A., 25.83% of company stock. of the publication of the Annual Report, and from information available in the official website of the Spanish Securities Market Subsequently, in April, July and September 2008, ACS restructured Commission (CNMV). its abertis stock by transferring part of its direct holdings to companies in its group. In April and July 2008 it transferred 7.39% As detailed in the Corporate Governance Report 2008, the of abertis stock to Aurea Fontana, S.L. followed in September by significant shareholdings for the purposes of Royal Decree 4.48% to Villa Aurea, S.L. After these transfers it has a direct holding 1362/2007 dated 19 October at the end of the financial year are: of 13.96% and an indirect one coming to 11.87%. 74 annual report financial and economic information Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market Shareholder structure (General Shareholders’ Meeting 1 April 2008) Share tranche Less than 100 Between 101 and 250 Between 251 and 500 Between 501 and 999 Between 1,000 and 5,000 Between 5,001 and 10,000 Between 10,001 and 25,000 Between 25,001 and 50,000 Between 50,001 and 1,000,000 Greater than 1,000,001 No. of shareholders (%) No. of shares (%) 11% 18% 17% 18% 30% 3% 2% 0.5% 0.4% 0.1% 0.05% 0.28% 0.57% 1.14% 5.73% 2.20% 2.53% 1.55% 8.42% 77.53% abertis and its shareholders and investors Bearing in mind the current uncertainty in financial markets, the Channels of information Investor Relations / Shareholders’ Office area believes that Investor Relations Department equitable and symmetrical communication with shareholders and Throughout 2008, abertis has dealt with queries from equity investors is more important than ever. analysts and investors individually every day, and coverage for fixed It is for this reason that year after year we seek to continue forging channel by ramping up meetings and road shows, in a year in which close ties with our investment community, a relationship which the level of indebtedness among companies has been of particular income analysts and investors has been started up with a direct gives us the opportunity to find out at first-hand about the concern. concerns of our shareholders and investors in general. There are a number of channels for information and contact with meetings, organise conference calls and provide a continuous the company which we are constantly enhancing and fostering in stream of information about all the company’s significant events in order to make it increasingly easy to obtain information to be used order to provide complete information to the market in a uniform Alongside these daily queries, we also attend seminars, hold regular when making investment decisions. We seek to deliver personalised way. care combined with personal, direct and stable communication. Transparency and active, fluid and constant communication with our investor community is one of our guiding principles Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market 75 annual report financial and economic information Meetings with investors 2008 24 Cities visited, some of them more than once 20 Road shows (15 Eu- rope, 1 Canada, 3 East Coast USA and 2 West Coast USA) In the course of 2008 we have increased activities in this area with the company, with whom more than 60 individual meetings have a larger number of meetings and in more countries with the two been held. habitual interlocutors for Investor Relations: institutional investors and financial analysts. Institutional investors Investor Relations works habitually and constantly with different brokerages, facilitating them with all the information necessary so that they may carry out a evaluation of the company and assign a 225 individual and 134 group meetings have been held in the target price to the shares in addition to a recommendation about world’s major financial markets. In total 24 cities have been visited, them. These financial analysts carry out a quarterly review based on some of them on more than one occasion, and 20 road shows have the publication of results and determined reports on relevant events been held (15 in Europe, 1 in Canada, 3 on the East Coast of the in addition to written reports on the development of the company. USA and 2 on the West Coast of the USA) Below is a chart showing the recommendations made by the various Financial analysts brokerages for abertis stock: In the course of 2008, abertis has achieved four new analysis covers in line with its goal of expanding the number of analysts who cover Evolution of the recommendation for abertis stock Decembre 2008 - (Decembre 2007) Hold 25% (21%) Underweight 7% (4%) Buy 68% (75%) 76 annual report financial and economic information Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market Within the communication actions carried out with analysts and PRÓXIMO programme investors, the moments of greatest informational intensity centre around the quarterly publications of abertis results and the Pioneering initiative among non-banking companies on the financial expansion operations which the company has undertaken. Ibex The PRÓXIMO programme is an initiative that, through informative With respect to the publication of results, 3 conference call meetings in different cities in Spain, allows the company to forge telephone multi-conferences were organised, one per quarter, with a closer relationship with its shareholders and investors, apart from an average attendance of over 50 people. Presentations were made coming together at Annual Shareholders Meetings. in the Barcelona and Madrid stock exchanges for the publication of the annual results, which were physically attended by 117 The programme, created on the recommendation of good analysts and investors in total. As such the event was followed by governance, is not obligatory for companies, but one whose 108 people through the corporate website as it was broadcast live implementation abertis felt was important in order to build by video webcast in three languages, with the opportunity to ask stronger ties to its shareholders, to be able to explain first-hand the on-line questions. The recorded event was available for subsequent facts and events happening at any given moment, and to give viewing during the following three months. stakeholders the opportunity to directly address management and In 2008, 42 communications were sent to analysts and investors concerns, and their suggestions particularly in the current which contained information concerning the company. environment. know the company’s strategy from first hand, express their doubts, In relation to the information provided to official bodies, during Meetings 2008 abertis communicated a total of 44 relevant events and This year the Shareholders’ Office met with investors and other information to the Spanish Securities Market Commission shareholders in Barcelona, Madrid, Valencia and Palma de Mallorca. (CNMV). The meetings were well attended with total of 321 participants and an average audience of 80 people. In Barcelona the presentation was part of the “Saló del Diner, la Borsa i Altres Mercats Financers” – Borsadiner. This show is addressed to small shareholders and professionals, and is one of the few fairs to be held in Spain specifically geared towards personal wealth saving, investment and management. 77 annual report financial and economic information Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market Bearing in mind the situation in the markets, this year the Since 2005, the year in which the PRÓXIMO Programme was Shareholders’ Office has made a special effort to get closer to our launched, a total of 27 presentations have been held which have investors community at the show by means of the abertis stand been attended by 2,259 shareholders and investors. which was open on all three days of Borsadiner. At the stand visitor doubts and queries were answered, information was given out abertis also offers “individualised” meetings. If a group of investors about the company and it was possible to sign up to receive or shareholders from any city is interested in getting to know the information about the company free of charge. company, they can simply get in contact with the Shareholders’ In addition to the stand a presentation was given which set out the key factors in the company’s strategy and growth forecasts, and A new feature in 2008 has been the customer satisfaction survey attendees were able to put their questions in person to abertis we have carried out to identify areas of improvement. It shows that CEO, Mr. Salvador Alemany, the Financial Director and the head of 95% of attendees come along to find out at first hand about Office and arrange a meeting. the Shareholders’ Office. innovations at the company, 28% to compare abertis with other companies in their investment decisions, and 25% to ask about or clarify company issues in person. Events already passed Since 2005: 27 presentations - 2,259 attendees 78 annual report financial and economic information Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market www.abertis.com Our goal is to make the Investor Relations website into a Shareholders’ Service phone: 902 30 10 15 24-hour service, 365 days a year to help you with any question, management tool for visitors (shareholders, investors and the doubt or suggestion you may have. markets in general) which gives them fast and easy access to the most significant information about the company. During 2008 more than 1,400 queries were responded to, many of which concerned themes related to the General Meeting, the In 2008, new features have included the option in our alerts service extension of share capital and dividends. Distribution of Telephone Queries for the Shareholders’ Service (Data in percentages) (an information service which sends information based on a pre- selected list of topics of interest to the user’s personal e-mail address) to receive an alert about events organised by the company and to receive the new abertis News, a new communication channel featuring a regular round-up of the main company news with an attractive design and sent straight to the user’s personal e- mail address. In 2008 this section was the second most visited on the abertis web page and within this section, the most visited area was Relevant Facts in English. abertis magazine Our corporate publication has a section specifically for shareholders and investors with all the information that could be interest to the investor community: quarterly results, dividends, share evolution, company presentations, etc. 79 annual report financial and economic information Letter from the chairman 1. Corporate administration 2. abertis group business activities 3. Corporate social responsibility 4. Financial and economic information 4.1 Consolidated figures 4.2 Financial management 4.3 Shareholders and the stock market Mail format, in a video re-broadcasting in three languages through the E-mail, investor.relations@abertis.com abertis web page, and which could be watched in recorded version Adress, Avenida del Parc Logístic, 12-20, 08040 Barcelona during the following three months. These direct channels to the company offer the possibility of open The Ordinary General Shareholders’ Meeting was held with a total dialogue with shareholders, so they can express their doubts and of 476,256,979 shares; 187,256,648 were present, and 289,000,331 the company can provide any information or clarification that may were represented, forming a quorum of 74.59% of share capital be necessary (29.33% present and 45.26% represented). General Shareholders’ Meeting The Shareholders’ Office will answer any questions related to attendance or organisation of the Annual Shareholders Meeting, in The shareholders’ telephone responded to some 273 calls relating to the Annual Meeting and over 200 requests for information were attended from the Shareholders’ Office. accordance with the rights of shareholders under article 212 and The Investor Relations / Shareholders Office area pledges a 144 of public limited companies and article 7 of the regulations on commitment to its shareholders, its private and institutional General Shareholders’ Meetings. investors, to market analysts and in general to the entire investor community to form strong ties with them and provide them with The General Shareholder’s Meeting was held in the financial year of accessibility and availability. In short, we pledge A COMMITMENT 2008, on 1st of April, and was broadcast live by webcast in a video TO INFORMATION AND TRANSPARENCY. During 2008 more than 1,400 queries were responded to, many of which concerned themes related to the Annual Meeting, the extension of share capital and dividends. Edits: Studies and Communication Corporate Management, abertis Design: Gosban B.16845-2009 Printed on Ecological Paper 

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