Annual Report 2014 Commitment & delivery Contents 2 5 9 Letter from the Chairman Report from the Vice chairman-CEO Corporate Governance 13 32 45 Group business activities Economic and financial information Corporate social responsibility Letter from the Chairman Letter from the Chairman 2 Letter from the Chairman a perspective of solidity and continuity in this exit from the crisis. However, this is not so for the effects of the crisis, which will still take time to heal. Within this European framework, we should add the measures announced by the new Commission, with the support of the European Parliament and Council, to promote and activate resources for the growth package in strategic areas for European competitiveness such as transport and telecommunications infrastructures. The prospect of greater flexibility in fulfilling economic stability objectives (deficit and debt) without renouncing the principle of adjusting these imbalances is one more factor confirming the changing economic scenario. the environment, Consistent with this somewhat more hopeful 2015 growth forecasts provided by various organisations are clearly more positive. For example, the International Monetary Fund estimates that growth in all developed countries will rise from 1.8% in 2014 to 2.3% in 2015, and in the case of emerging countries, growth will increase from 4.4% to 5.0%. However, despite this improved vitality of the economy, we must not lose sight of the fact that strategies that are geared too much towards containing public spending and investment - with all of their procyclical effects - have actually dragged down the recovery process at various moments in time. The renewed direction of European economic policy must provide enough space and potential for countries to continue to invest in maintaining and improving their public assets, counting on the support of a private sector willing to commit resources to projects with sufficient social demand and, by extension, with appropriate expectations of a return on investment. 3 Dear Shareholders, In my letter to you one year ago in the Annual Report for 2013, I stated that “We need to continue to call for caution in the assessment of the economic situation. Such a change in trend does not automatically translate into growth that is strong and fast enough not just to get back to the starting point of this long crisis but to begin to alleviate its most serious and searing impact, namely unemployment”. And I believe that the twelve months that have elapsed since I wrote that message have endorsed this hopeful, though cautious, vision about our current situation. Is the worst over? The macroeconomic results with which the Spanish economy closed 2014 allow us to be cautiously optimistic, and there are reasons to believe, without abandoning the necessary caution, that the worst is already behind us. Traffic on all our toll roads increased for the first time in seven years, posting an overall growth of 2.3%, while in Spain 2014 growth was 2.0%. In parallel, motor fuel consumption increased by 2.1%, a clear sign that demand, like other consumption indicators, has begun to rebound. We must therefore acknowledge that the Spanish economy is showing clear signs of a recovery that is no longer limited to macroeconomic indicators, but is being reflected in terms of individual purchasing decisions and business investment. Without losing sight of the principle of prudence in our estimation of short and medium-term expectations, it would seem that the dynamics shown by Spain and the European economy, both of which are clearly supported in the measures implemented by the ECB, offer of At Abertis we can provide several examples public-private how partnerships are a factor helping to boost economic growth. In France, for example, the Plan Relance embodies a short-term investment commitment to the country’s main concession-holders to improve the road network. Chile and Brazil also offer concrete examples of how the private sector can invest in public assets using models that commit significant resources in return for extensions to concession contracts. These are practices that Spain should also exploit to consolidate the path towards recovery and growth. A good year for Abertis We closed the 2014 financial accounts with excellent results on all levels. The improvement in activity, reflected in an increase in traffic in all our major markets, coupled with the consolidation of our operational efficiency plan, allowed us to increase revenue by 7%, gross operating profit (or EBITDA) by 10.5% and net profit by more than 6%. We achieved all this despite the negative impact of exchange rates and increased taxation in some of the countries where we operate. In 2014 we invested almost 1.6 billion Euro to enable our Group to grow and to bolster our activities in the companies in which we operate. These investments aim to renew and strengthen our asset portfolio, making us stronger and more competitive, while contributing effectively the economic and social progress of the territories and communities they serve. to For a group like Abertis, the ability to participate actively in projects to build a better and more connected society using infrastructure an efficient transport network and rolling out electronic communications networks is a source of opportunities and an ongoing challenge. The financial strength of our Group can be seen in the fact that in 2014 we were able to refinance over 1.5 billion Euro by issuing bonds with an average life of 10 years. These operations benefited from the favourable conditions of the capital markets, both in sovereign and corporate debt, allowing us to continue working to optimise our maturity profile and cut the average cost of our debt. The strength and credibility of our company was reflected in the market rating we have enjoyed. Throughout 2014 this trust led to a positive progression of our share price, which closed the year up 6.8%, significantly higher than the 3.7% improvement across the Spanish stock exchange’s IBEX-35 index during the same period. Likewise, in 2014 our shareholders benefited from a dividend of 0.66 Euro per share which, combined with the traditional 1 x 20 scrip, makes one of the most attractive returns among Spanish listed companies. Here I would like to highlight the more than 3 billion Euro we have paid out in dividends over the last five years. Corporate Social Responsibility and Governance Companies are not neutral players in our society. Their decisions and actions cause effects and involve consequences, not just on an economic but also on a social and environmental level. to increase Today, more than ever, we must redouble transparency our efforts in management, corporate foster and governance and generally enhance models of Corporate Social Responsibility as a way of strengthening the company’s commitment towards its improve itself to be highly resilient, far-seeing and transformative. We have taken decisions, which have not always been easy, to redefine the contours of the Group. We have gained in focus and size, without compromising or questioning the viability of business projects with their own identity, providing them with greater flexibility and visibility to build their own future. In the final analysis, we have tried to strengthen competitive advantages and to consolidate our leadership capacity in the various sectors in which the Group’s companies operate. Geographical diversification and growth in the markets where we operate, together with a focus on our core activities, are the foundations for building the sustainability of our company. We are approaching the future with the utmost confidence, setting off from an excellent starting position, and facing up to a series of challenges with which we are already very familiar: maintaining the competitive advantage provided by our industrial vision of our projects and continuing to provide sustainable constructive social and economic development in the countries in which we operate. solutions to Salvador Alemany Mas Chairman Letter from the Chairman shareholders, employees, customers and society in general. Our practices in this area have enjoyed a decade of support and recognition from the principal management excellence indicators. Once again this year we are the only Spanish company in our sector to be included in The Sustainability Yearbook and, also as the result of this effort, we are listed in the Dow Jones Sustainability Index World, acknowledging the companies with the best sustainability practices. Our Corporate Social Responsibility report is based on the highest (Comprehensive) grade of international standards promoted by the Global Reporting Initiative. We have also started to use the ISO 26000 guide and participate in various initiatives such as the United Nations Global Compact and Carbon Disclosure Project. Also in this area, and in order to promote the positive impact our operations have on society, the Board of Directors has approved the creation of a Corporate Social Responsibility Committee responsible for activating and assessing policies to be followed in this area by the companies in our Group and for ensuring that transparency criteria and best practices are followed while meeting our commitments to society. This initiative responds to the growing intangible importance of this asset, and places decision-making and social monitoring responsibility initiatives at the heart of the supreme body of corporate governance. the organisation’s Targeting and growth, keys to our future Throughout this long cycle of crisis and economic uncertainty in some of our key markets, our company has shown 4 Report from the Vice chairman-CEO Report from the Vice chairman-CEO 5 Report from the Vice chairman-CEO Dear Shareholders, Last year Abertis completed its Strategic Plan 2011-14 with outstanding results in all areas. Following the implementation of the Plan, Abertis is now a more profitable, efficient, stronger and more focused company, and also a more international one with a broader asset base. It is a company with greater capacity for growth, ready to incorporate new assets to replace those which are to leave our portfolio in the coming years. A company, in short, with enormous potential for creating value in the medium and long term, which we have translated into a new Strategic Plan for the period 2015-2017. the macroeconomic Moreover, environment in which we operate is broadly favourable. This can be seen in the GDP growth forecasts for 2015, which are positive in both Spain and France. And it is also shown by the figures for traffic on our toll roads, which in both 2014 and also the first months of 2015 have been positive for the Group’s four main markets. Sound profit and loss account showed results in 2014 Abertis’s increases figures: in all the main revenues grew 7%, EBITDA by 10% and net profit by 6% in a year marked by an improvement in overall traffic and which consolidated the positive trend in markets such as Spain, where traffic had not grown since 2007. The results were affected by changes in the scope compared to the previous year, as well as the implementation of new accounting standards and the impact of exchange rates, which had a particular effect due to currency depreciation in Chile, Brazil and Argentina. Excluding the effect of exchange rates, results in 2014 would have advanced by 11% in revenues and about 14% in EBITDA. The Average Daily Traffic (ADT) on all the Group’s toll roads grew by 2.3% in 2014, with major increases in Chile (+4.8%), Brazil (+3.1%) and France (+2.4%) which all performed better than forecast. In the case of Spain, in 2014 the consolidation of the turnaround was confirmed with positive numbers throughout the year, a period in which traffic grew 2% to make it into the first positive year since 2007. In the fourth quarter of 2014 traffic in Spain achieved growth of 3.4%. There has also been a significant improvement in the Group’s profitability levels, with an EBITDA margin which reached 64% in 2014 compared with 62% in the previous year. This increase is the outcome of the growing impact of our efficiency plans, which at year end had accumulated total savings of 741 million euros in the period 2011-2014. Operating income in 2014 came to 4,889 million euros (+7%), mainly due to the improvement of overall traffic and the change in scope entailed by the full consolidation of Metropistas (Puerto Rico), Hispasat and the new mobile towers business. 87% of total revenue was generated by the toll road business while 13% came from the telecommunications sector. EBITDA came to 3,122 million euros (+10%), among other reasons due to good operating performance and the full consolidation of Hispasat and Metropistas in the Group accounts. The Group’s consolidated net profit stood at 655 million euros, 6% higher than in the previous year. Optimising the balance sheet and debt structure At the end of 2014 consolidated net debt stood at 13,789 million euros. 67% of total debt is secured with the company’s own projects (non-recourse debt). 92% of the debt is long-term and 84% is at fixed rates. During this period Abertis benefited from the conditions in the capital markets for sovereign and corporate debt and continued to work on optimising its maturity profile and reducing the cost of its debt. Between March and September several issues for qualified long-term bond investors were closed. successfully Overall, in 2014 the Group carried out corporate and subsidiary refinancing operations for a total amount of more than 1,500 million euros at an average cost of 2.6% and maturities of more than 10 years. Total investment made during the year came to more than 1,500 million euros. Expansion investments in the period amounted to 832 million euros. The main expansion projects were the improvement and expansion works on toll roads in Brazil (536 million euros) and investments in the satellite business (145 million euros). In addition, the Group carried out investments coming to 626 million euros 6 in growth operations with the acquisitions in Chile of 42.3% of Invin (256 million euros) and an additional 8.59% of Infraestructuras 2000 (17 million euros), the purchase of an additional 6% of Metropistas (32 million euros) and the purchase of 1,743 mobile phone towers from Telefónica and Yoigo (224 million euros) and the towers operator TowerCo in Italy (95 million euros). Investments in Spain amounted to a total of 452 million euros. Creating shareholder value Abertis shares closed 2014 with an increase of +6.8% over the course of the year at a price of 16.43 euros per share and outperformed the Ibex 35 which rose by +3.7%. The highest closing price in the year was set on 1 December (17.22 euros). to commitment its Yet Abertis’s shareholders goes far beyond the market performance of its shares. The Group is to distribute an additional dividend of 0.33 euros gross per share charged to 2014 which, when added to the interim dividend paid in November 2014, entails direct shareholder remuneration in the shape of ordinary dividends coming to 0.66 euros gross charged to profits in 2014. This represents a maximum amount to be paid in dividends of 592.9 million euros, which is 5% higher than the sum paid and charged to 2013. Additionally, and following the company’s traditional policy, the Board will also propose to the Shareholders’ Meeting a bonus issue of one new share for every twenty old ones amounting to 134.7 million euros. Report from the Vice chairman-CEO The proposed shareholder remuneration for 2014 means that the growth rate of the ordinary dividend in the period 2010- 2014 was 7% per annum, including the additional dividend entailed by the bonus issue. As for its dividend policy, in the last five years the Group has distributed 3,000 million euros to its shareholders, a historical record for the company. It is worth recalling that an extraordinary dividend of 800 million euros was paid in 2011. Stocktaking of the Strategic Plan 2011- 2014 New Strategic Plan 2015-2017 Last year Abertis completed its 2011-2014 Strategic Plan, which was geared towards creating focusing shareholder value, on its core business and searching for efficiencies, geographic diversification and sustainable shareholder remuneration. Over the past three years the Group has made divestments coming to 4,600 million euros (businesses in car parks, logistics parks, airports and stakes in firms where Abertis was unable to exercise its industry leadership role, as in the Portuguese company Brisa, the Italian Atlantia and the French Eutelsat) to focus on growth operations in its core businesses. This led to investments of 8,000 million euros (Metropistas in Puerto Rico, Arteris in Brazil, OHL concessions in Chile, the takeover of Hispasat, the mobile phone towers of Telefónica and Yoigo in Spain, and Atlantia in Italy, among others). In addition, between 2011 and 2014 the Efficiency Plan has meant cumulative savings of 741 million euros, higher than forecasted by the company, which has turned efficiency into a key ingredient in Abertis’s business culture and made it possible to increase profitability, with an expansion of 320 basis points in the EBITDA margin. In 2014 Abertis presented its new Strategic Plan for 2015-2017 with the overriding objective being to continue creating value for shareholders. Following a successful period of four years from 2011 to 2014, in which the company undertook a transformational leap forward, Abertis is preparing to further develop its strategy of focusing its business, increasing returns for shareholders, seeking efficiencies, boosting international growth and consolidating a new organisational structure. The new drive to business focus will come with Abertis intention’s to launch an IPO of its terrestrial telecoms business in 2015 subject to market conditions, at the end of 2014 consisting of a network of around 8,000 towers for broadcasting (radio and towering (mobile telephone). Listing this business will provide Abertis with funds to continue growing its toll road business and reinforce its commitment to financial solvency (corporate shareholder ratings) and remuneration. television) and The IPO of the terrestrial telecoms division will enhance its financing flexibility and increase its visibility at a time when the market for telecoms is hungry infrastructure projects. Moreover, it will 7 In 2015 the management team at Abertis will continue working to achieve the objectives set out in the company’s Strategic Plan so as to present next year a stronger, more profitable and global Group. A company in short prepared to continue creating value for our shareholders and satisfaction for our employees and society. Francisco Reynés Vice chairman-CEO Report from the Vice chairman-CEO allow the division to raise new funds in the future to finance its growth and international expansion in a market where there are currently many opportunities, particularly in the European mobile telephone towers segment. The new company will operate independently from Abertis, with its own brand, corporate image and management team. Growth in shareholder remuneration The new Strategic Plan also involves an improvement in shareholder remuneration in the next three years. The dividend per share will increase by 5% each year to 2017. Taken together with the bonus share issue of 1 new share for every 20 existing shares, this equates to a 10% annual increase in shareholder remuneration. The company has also announced a share buyback plan of up to 5% of the share capital for 2015 to 2017. Under the new shareholder the company is expected to distribute more than 2,000 million euros over the next three years through ordinary dividends alone. remuneration policy, Financial and efficiency objectives Under its new plan, Abertis aims to increase EBITDA at an annual rate of 8% over the next three years at current scope and fixed exchange rates. It will also seek to consolidate its leading position in the market so that it can continue to exploit business opportunities that may arise in its core business of toll roads, particularly in international markets. Abertis has also announced a new efficiency plan for 2015-2017. This is expected to generate savings of up to 450 million euros, concentrated in the Group’s business units in France, Brazil, Chile and Spain. It is estimated that by the time they are completed the efficiency plans for 2011-2014 and 2015-2017 will have generated over 1,400 million euros of additional enterprise value (EV) for Abertis. These new savings will help Abertis improve its EBITDA margin by 4 points, from 64% in 2014 to an estimated 68% in 2017. The new efficiency plan will build on the work done in this area over the last four years (2011-2014). Boosting organic and acquisition-led growth Abertis will maintain its commitment to both organic and acquisition-led growth in its toll road business from 2015 to 2017. In terms of growth through acquisitions, the Group will study various projects in its target markets (Western Europe and North America). These projects will be analysed under a strict financial-discipline perspective based on the company’s industrial role. They will only be carried out if they do not put at risk the Group’s dividends policy or its financial strength (rating). In terms of organic growth, over the next three years the company will focus on extending the terms of concessions currently in its asset portfolio. 8 Corporate Governance Corporate Governance Abertis operates through a strong and organised governance structure consisting of its Board of Directors and a number of committees. The highest priority of this structure is corporate transparency and compliance with the best international practices of good corporate governance. The Group deems that, in addition to the financial targets, the social interest must prevail at all times in the everyday operation of the company’s Board of Directors. Due to this philosophy, the Corporate Social Responsibility Committee was created in 2014, which is the most effective instrument to ensure that the transversal values of the CSR have a relevant weight in the management of the Group. The chairman of this Committee is Mr Salvador Alemany, who is chairman of the Group and of the Abertis Foundation, through which numerous initiatives of a cultural, educational, social and environmental nature are implemented. With the new CSR Committee, Abertis consolidates itself as one of the pioneering companies of the Spanish Ibex and it pre-empts the future regulatory framework of the issue in Spain. Moreover, in line with the good international practices, a new regulatory framework has been adopted to reinforce the cornerstones of good corporate governance. The Code of Good Tax Practices has the aim of enhancing legal security, improving reciprocal cooperation with the Tax Authorities and the application of responsible fiscal policies, which will be controlled by the Board of Directors itself. For its part, the new version of the Code of Ethics will serve as a fundamental norm for all companies of the Group through the so-called Local Committees. Finally, the Norm for the Prevention of Corruption defines behaviour guidelines in the relationships with public authorities to prevent actions that may be construed as being corrupt. With regards to the composition of the Board of Directors, the Group has reinforced the presence and the active participation of the independent directors in the delegated monitoring bodies. At present, both the Appointments and Remuneration Committee and the Audit and Control Committee are chaired by independent directors. An intense task that responds to the company’s motto, “Commitment & delivery”, the reminder of Abertis’s true raison d’être: the creation of value for its shareholders, its employees, the territories where it operates and ultimately, for all of society. 9 Chairman Salvador Alemany Mas Vice chairman-CEO Francisco Reynés Massanet Members Isidro Fainé Casas Juan-Miguel Villar Mir Carmen Godia Bull Javier de Jaime Guijarro Marcelino Armenter Vidal Carlos Colomer Casellas María Teresa Costa Campi Susana Gallardo Torrededia Tomás García Madrid Miguel Ángel Gutiérrez Méndez Mónica López-Monís Gallego Santiago Ramírez Larrauri José Antonio Torre de Silva López de Letona Manuel Torreblanca Ramírez Juan Villar-Mir de Fuentes Board of Directors Secretary, non-board member Miquel Roca Junyent Vice-secretary, non-board member Josep Maria Coronas Guinart 10 Corporate Governance Delegated monitoring bodies Executive Committee Chairman Vice chairman-CEO Members Salvador Alemany Mas Francisco Reynés Massanet Isidro Fainé Casas Juan-Miguel Villar Mir Carmen Godia Bull Javier de Jaime Guijarro Marcelino Armenter Vidal Tomás García Madrid José Antonio Torre de Silva López de Letona Secretary, non-board member Miquel Roca Junyent Vice-secretary, non-board member Josep Maria Coronas Guinart Audit and Control Committee Chairman Miguel Ángel Gutiérrez Méndez Members Marcelino Armenter Vidal Carlos Colomer Casellas Tomás García Madrid José Antonio Torre de Silva López de Letona Secretary, non-board member Marta Casas Caba Appointments and Remuneration Committee Chairman Mónica López-Monís Gallego Members Carmen Godia Bull Javier de Jaime Guijarro María Teresa Costa Campi Juan Villar-Mir de Fuentes Josep Maria Coronas Guinart Secretary, non-board member Corporate Social Responsibility Committee Chairman Members María Teresa Costa Campi Salvador Alemany Mas Susana Gallardo Torrededia Santiago Ramírez Larrauri Manuel Torreblanca Ramírez Secretary, non-board member Josep Maria Coronas Guinart 11 Corporate Governance Senior Management Vice chairman-CEO Francisco Reynés Massanet CFO & Corporate Development Managing Director José Aljaro Navarro General Counsel and Corporate Managing Director Josep Maria Coronas Guinart Industrial Development Managing Director Josep Lluís Giménez Sevilla Human Resources Director Joan Rafel Herrero Managing Director of Toll Roads Spain Antoni Español Realp Managing Director of Sanef Lluís Deulofeu Fuguet Chief Executive Officer of Arteris David Díaz Almazán General Manager of Toll Roads Chile Luis Miguel de Pablo Ruiz Managing Director of Toll Roads International Carlos del Río Carcaño Chairman and Managing Director of TSI François Gauthey Managing Director of Telecom Terrestrial Tobías Martínez Gimeno Chief Executive Officer of Hispasat Carlos Espinós Gómez 12 Group business activities Group business activities Abertis is the world-leading group in the management of toll roads and a prominent player in the field of satellite and terrestrial telecommunications infrastructures. The Group has presence in 12 countries and, with over 16,500 workers, is oriented towards the creation of value through investment in infrastructures that contribute to the economic and social development of the territories. Nowadays around two thirds of the Group’s revenue (62%) is generated outside Spain. Especially important in this respect are France, which contributes 32% of the total, Brazil, with 19%, and Chile, with 4%. The Group closed 2014 with the satisfaction of having fulfilled its commitments to growth, efficiency and the contribution of value, in a financial year in which is has presented a new Strategic Plan and a new corporate image. The 2015-2017 Strategic Plan marks the path towards creating a more solid, global and more efficient Group; aligning itself with the values that reflect the new brand, the global nature of a world leading group in the business of toll motorways, which is open to the different cultures that shape the Abertis universe. The company is listed on the Spanish stock exchange and has been a part of the selective Ibex 35 since the inception of the latter in 1992. It is also listed on the main international indices such as Standard & Poor’s Europe 350, FTSEurofirst 300 and FTSE IIS CG. 13 Group business activities ABERTIS’S WORKFORCE By SECTOR AND COuNTRy CONTRIBuTION OF REvENuES By SECTOR ABERTIS’S WORKFORCE 90% TOLL ROADS 8% TELECOMMUNICATIONS 2% CORPORATION 40% BRAZIL 21% SPAIN 16% FRANCE 12% ARGENTINA 9% CHILE 2% REST OF THE WORLD l 87% TOLL ROADS l 9% TERRESTRIAL l 4% SATELLITES CONTRIBuTION OF OPERATING REvENuE By COuNTRy l 38% SPAIN l 32% FRANCE l 19% BRAZIL l 4% CHILE l 3% ARGENTINA l 2% PUERTO RICO l 2% OTHER A Group orientated towards the creation of va- lue and the socioeconomic development of the territory 14 Toll Roads Toll roads Abertis is the world leader in the toll roads sector, managing almost 8,300 kilometres across the globe. The division generates 87% of the total Group revenues and 89% of the EBITDA. The Abertis toll roads business closed 2014 with an improvement of traffic in all of its main markets. Overall, the total traffic of the toll roads grew by 2.3%, with noteworthy increases in Chile, Brazil and France. In the case of Spain, the Average Daily Traffic grew by 2%, its first annual growth since 2007. The Abertis toll roads business was focused this year on major investment projects in Spain, Brazil and Chile, but also displayed a new impetus in the toll technology division –now Toll Solutions International–, which offers innovative solutions in the management of road transport mobility in countries such as the United States, Canada or the United Kingdom. United Kingdom Ireland France Spain Canada USA Puerto Rico Colombia Brazil Chile Argentina 15 Brazil Direct management 3,246 km Toll roads Abertis manages in Brazil –through its subsidiary Arteris– nine toll roads concessions, with a total of 3,246 kilometres, which consolidates it as the largest operator of toll roads in the country. It has a 17% share of the Brazilian toll road market. 2014 has been an intense year for Arteris in terms of investments, the search for synergies and the application of “best it practices” of management, whilst has intensified its Social Responsibility actions. Its new corporate image, based on the slogan “Your road, our history” is a display of the company’s commitment to society. In terms of investments, Arteris has continued with its ambitious plan of works for improving and modernising its infrastructures. In 2014 it invested 1,950 million reais (almost 600 million euros), the highest investment figure in the history of the Brazilian company. Among the most prominent works, there are the extension of the Serra do Cafezal in the Régis Bittencourt toll road, an area of vital importance for communications between the south and the southeast of the country and the works for doubling the capacity of a stretch of the BR-101 in the State of Rio de Janeiro. In addition, the works of Avenida do Contorno in Niteroi are in completion phase, and works have begun on Contorno do Florianopolis. In the financial year, Arteris maintained the Public an open dialogue with Administrations in order to become an indispensable partner for the improvement of the country’s infrastructure network, through public-private partnerships. In the past few months, significant agreements have been reached in this regard, as a contract supplement of 395 million reais (120 million euros) for the works for doubling the capacity of the Serra do Cafezal. Meanwhile, the Group has reinforced in Corporate Social its commitment Responsibility, with actions focused on road safety and culture. This line is part of the organisation of the “I Foro de Seguridad”(1st Safety Forum), which brought together specialists and authorities in the matter. Arteris aims to reduce road casualties 50% by 2020. In 2014, these dropped by 9%. Finally, in the field of culture, it should be noted the important social repercussion of the sponsorship of the largest exhibition of Salvador Dalí, which travelled to Latin America. The exhibit, which could be seen in São Paulo and Rio de Janeiro, became the most visited retrospective exhibit of the artist in history. Belo Horizonte Franca Ribeirão Preto São Carlos Araras São Paulo Río de Janeiro Brazil Autovias Centrovias Intervias Vianorte Litoral Sul Planalto Sul Fluminense Fernão Dias Régis Bittencourt Curitiba Florianópolis 16 Toll roads % stake (1) Km. Concession end Company Arteris Estaduais Autovias Centrovias Intervias Vianorte Arteris Federais Fluminense Fernão Dias Régis Bittencourt Litoral Sul Planalto Sul Latina Manutenção (2) Latina Sinalização (2) 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% (1) Abertis controls 51.00% of Partícipes em Brasil, which in turn has a 69.3% stake in Arteris. (2) Companies working in construction for the concession operators in Brazil ADT Autovias Centrovias Intervias Vianorte Fluminense Fernão Dias Régis Bittencourt Litoral Sul Planalto Sul Total CONS. RESuLTS IFRS (millions of euros) (Contributions to Abertis consolidated)(**) Operating revenue EBITDA EBIT Investments Operational investment Expansion investment 2014 12,249 15,016 10,488 15,172 16,712 25,736 22,547 34,401 7,194 18,619 2014 845 433 195 2014 45 536 (*) Restated 2013 figures considering the impact of the entering into force of IFRS 10 and IFRS 11 (**) At the exchange rate for each period 17 2019 2019 2028 2018 2033 2033 2033 2033 2033 var % 2.4% 1.5% 1.0% 1.3% 5.2% 2.3% 0.2% 6.5% 4.5% 3.1% Var % -2.4% 2.4% 5.9% 317 218 376 237 320 570 390 406 413 3,246 2013* 11,963 14,788 10,381 14,977 15,893 25,169 22,508 32,317 6,883 18,061 2013* 866 423 184 2013* 27 493 France Direct management 1,761 km Peterborough Gloucester Cirencester Sawtry Alconbury RMG Swindon Toll roads The presence of Abertis in France is channelled through the Sanef in which concessionary group, it has a holding of 52.55%. The Group manages a total of more than 1,760 kilometres, a network representing 22% of the country’s toll roads. It also has a presence in 275 kilometres through other concessions. The subsidiary of Abertis in France closed 2014 with an improvement of its results and traffic figures. The success of the efficiency and the cost control strategy has made it possible to offset the rise in taxes on the division. Among the most important milestones of the period, is the contract with the city of Lyon for performing the improvement works on the Boulevard Périphérique Nord of the city, a 10 km urban roadway. The contract includes the operation, the maintenance of the roadway and its equipment and the management of its toll collection systems for 20 years. In 2015, the division begins a new period under new management that will lead an ambitious plan, which revolves around three main cornerstones: the improvement of Sanef’s relationship with its shareholders, the simplification of the organisation and its processes, and a new efficiency plan that will allow for making use of the synergies arising from it belonging to the Abertis Group. Meanwhile, it will continue to work on improving the country’s road network, with different innovation projects such as the study of the extension of a closed toll system –which allows the toll price to be adapted to the actual distance travelled– and a pilot project of ‘free-flow’ (toll without a barrier) on the northwest network. However, the project that will set the attention of Sanef in the upcoming years will be the so-called Plan Relance, which will involve the investment of 550 million euros for the improvement of its infrastructure, and the economic reactivation and the employment boost in France. At a time when the debate on the financing of the infrastructure in France has been reopened, this ambitious public-private partnership agreement is the example of Sanef’s vocation to collaborate with the public administrations, in a climate of open dialogue for seeking the best solutions for the State, the companies that invest in the territory and French society in general. Caen Alençon París Sanef Reims Strasbourg Langon Lyon 18 Pau Concessionaire companies Sanef Sapn Sea14 (**) Sanef Aquitaine (***) SE BPNL SAS (****) Toll roads Concession end 2029 2029 % stake 52.55% (*) 99.97% 99.97% 100% 100% Km. 1,388 372 1,761 (*) Abertis has a 52.55% stake in Sanef, which has holdings in the other companies (**) Company that operates the A14 toll road (sapn). (***) Company that operates the A65 toll road (A’Lienor). (****) Company that operates the business of Boulevard Péripherique Nord in Lyon, acquired in October 2014, pending starting its activity Telematic companies % stake 100% 100% 100% 100% 100% France Eurotoll Bip&Go Sanef ITS Rest of Europe sanef Operations Ltd Sanef ITS Operations Ireland Other stakes France A'Lienor Alis Routalis (*) Canada TC Flow (**) (*) Company that operates the A28 toll road (Alis) (**) Company that provides teletoll services in P. Vancouver (Canada). ADT Sanef Sapn Total CONS. RESuLTS IFRS (millions of euros) (Contributions to Abertis consolidated) Operating revenue EBITDA EBIT Investments Operational investment Expansion investment % stake Km. Concession end 35.00% 19.67% 30.00% 50.00% 2014 23,273 28,436 23,605 2014 1,623 1,023 625 2014 41 91 150 125 275 2013* 22,718 27,769 23,044 2013* 1,562 978 587 2013* 47 88 2066 2067 var % 2.4% 2.4% 2.4% Var % 3.9% 4.6% 6.6% (*) Restated 2013 figures considering the impact of the entering into force of IFRS 10 and IFRS 11 19 Toll roads Avasa Bilbao Aulesa León Astorga Vitoria Logroño Lleida Zaragoza Toll roads La Jonquera Girona Palafolls Barcelona Tarragona Acesa Invicat Aucat Autema Túnels Segovia Adanero Ávila Guadalajara Madrid Navalcarnero Arganda del Rey Iberpistas Castellana Trados 45 Accesos de Madrid Henarsa Castellón Valencia Aumar Ciralsa Alicante Spain Direct management 1,512 km Sevilla Aumar Aumar Cádiz In Spain, Abertis is the first operator of toll roads by kilometres managed: 1,526 kilometres of toll roads that represent 59% of the total toll roads in the country. Similarly, it also has a share in a total of 264 kilometres through other concessions for motorways and tunnels. 2014 has been the year of growth of the traffic on Abertis’s toll roads in Spain for the first time since 2007. The incipient economic recovery, the improvement of industrial activity and the drop in the price of crude oil have led to an increase in traffic of all types of vehicles, especially in the heavy vehicles segment. With regards to investments, in 2014 the ambitious project for the enlargement of the AP-7 was completed, which has involved an investment of over 500 million euros. In addition works have been started under the agreement signed with the Government of Catalonia for fresh investment in the C-32 and C-33 toll roads, which includes discounts for customers on these toll roads, and a closed toll system is already in operation on the C-32, which adjusts the price to the actual distance travelled. 20 In addition, the agreements on bonuses agreed with the Administrations were maintained of a part of Abertis’s network in Spain –AP-2, AP-68 and AP-7– with the aim of reducing the level of accidents on conventional roads. also been There has a major modernisation effort in the network, with the remodelling of the service areas of the AP-7 and the installation of more “all payment” lanes that already represent half of the network’s total. Furthermore, customers have benefited from improvements in customer care and the new virtual office where they can carry out any procedures online. In its vocation for coming closer to the territory, the Abertis division in Spain has led important projects for the protection of the cultural heritage. 2015 will be a year of intensification of the actions implemented in 2014, both with regards to the works to be carried and also the modernising of the infrastructures. Concessionaire companies Acesa Invicat Aumar Iberpistas Castellana Aucat Aulesa Avasa Toll roads % stake 100% 100% 100% 100% 100% 100% 100% 100% Km. 479 66 468 70 51 47 38 294 1,512 Concession end 2021 2021 2019 2024 (*) 2024 (*) 2039 2055 2026 (*) The concession term may be extended up to 2031 based on actual traffic over the period from 2015 to 2019. Other stakes Accesos de Madrid Túnels de Barcelona i del Cadí Henarsa Ciralsa Autema Trados 45 Bip & Drive (***) % stake Km. Concession end 35.1% 35.0% 30.0% 25.0% 23.7% 50.0% 50.0% 61 46 62 33 48 14 264 (**) The period of the concession may be extended until 2044, depending on the fulfilment of certain quality indices (***) Company that provides teletoll services ADT Acesa Invicat Aumar Iberpistas Castellana Aucat Aulesa Avasa Total CONS. RESuLTS IFRS (millions of euros) (Contributions to Abertis consolidated) Operating revenue EBITDA EBIT Investments Operational investment Expansion investment 2014 24,179 46,163 14,170 20,934 6,116 21,137 3,179 11,111 18,130 2014 1,334 1,095 794 2014 20 36 2013* 23,553 45,751 14,000 20,669 5,888 20,492 3,219 10,876 17,776 2013* 1,282 1,027 725 2013* 24 56 (*) Restated 2013 figures considering the impact of the entering into force of IFRS 10 and IFRS 11 21 2049 2037 2039 2040 (**) 2037 2029 var % 2.7% 0.9% 1.2% 1.3% 3.9% 3.1% -1.2% 2.2% 2% Var % 4% 6.6% 9.5% Chile Direct management 711 km Toll roads Abertis is the largest toll road operator by traffic volume in Chile, where it directly or indirectly manages more than 770 kilometres. Abertis’s commitment to the country has been strengthened in 2014 with a corporate reorganisation through acquisitions that boosted the control of the company in Chile to 100% of Rutas del Pacífico and to 50% in Autopista Central. It also gained majority control in the concessionary companies of Autopista del Sol and Los Libertadores. The toll roads in Chile presented positive figures both with regards to the traffic and also in EBITDA, thanks to the cost reduction generated by the efficiency plans and the application of the “best practices” of the Group. Among others, it is worth pointing out the implementation of a new network operating model, the configuration of a new unitary procurement process for five concessionary companies, the the homogenisation of the labour functions and remuneration policy throughout the group and the implementation of the SAP program. At the operating level, the innovation driven in previous years has continued with the installation of automatic payment in Rutas del Pacífico, which will be reinforced with new services, such as payment by Internet, allowing payment to be made by mobile phone or the prepayment system through agreements with malls. During 2014, important works started such as the construction of the last stretch of Autopista Los Andes. This project, which involves an investment of more than 110 million euros, will allow the completion of the infrastructure in 2017. Works have also started for the construction of the new Maipo bridge, which will replace the previous one, of old age, with an investment of 40 million euros. This work will involve lengthening the concession by 3 kilometres, as well as its duration by several months. In addition, a new tunnel has been put into service that connects Autopista Central with other urban motorways, which allows for improving the traffic flow and increasing the average speed of passage. Meanwhile, in its commitment to Corporate Social Responsibility, Abertis has signed an agreement with Fundación CorpArtes, which has made the ambitious exhibition of the artist Joan Miró possible in Chile. La Serena Coquimbo Ovalle Chile Gesa Elqui Rutas del Pacífico Autopista Los Andes Autopista del Sol Autopista Los Libertadores Autopista Central La Ligua San Felipe Viña del Mar Los Andes Quillota Valparaíso Quilpué Colina Santiago San Antonio 22 Toll roads Concessionaire companies Elqui Rutas del pacífico Autopista del Sol Los Andes Los Libertadores Gesa (*) Opsa (***) (*) Company that operates Elqui and other road infrastructures for third parties. (**) Company that operates rutas del pacífico. Other stakes Autopista Central ADT Elqui Rutas del Pacífico Autopista del Sol Los Andes Los Libertadores Total CONS. RESuLTS IFRS (millions of euros) (Contributions to Abertis consolidated)(**) Operating revenue EBITDA EBIT Investments Operational investment Expansion investment % stake 100% 100% 50% 100% 50% 100% 100% Concession end 2022 2024 2019 2036 2026 Km. 229 141 133 92 116 711 % stake 50.0% Km. 60 Concession end 2031 2014 5,964 29,889 33,083 7,829 16,538 17,749 2014 205 156 96 2014 2 275 2013* 6,041 28,243 31,399 7,490 15,600 16,935 2013* 228 164 95 2013* 6 1 var % -1.3% 5.8% 5.4% 4.5% 6% 4.80% Var % -10.2% -5.1% 0.8% (*) Restated 2013 figures considering the impact of the entering into force of IFRS 10 and IFRS 11 (**) At the exchange rate for each period 23 Argentina San Fernando San Isidro Buenos Aires Luján Buenos Aires Argentina Autopistas del Oeste (GCO) Ausol Puerto Rico Toll roads In Argentina, Abertis manages two of the most important roads leading into Buenos Aires. The Grupo Concesionario del Oeste (GCO) is the holder of the concession of the Autopista del Oeste, which links the country’s capital with the town of Luján on the western route into the city, while Ausol is the holder of the concession of the city’s northern access route, popularly known as the Autopista Panamericana, and for maintenance of the Autopista General Paz, a major beltway in the city. The most noteworthy milestone of the division in the year 2014 is the construction project of a new section of the General Paz motorway, which is being built in accordance with the established timetable. In 2014, Abertis reinforced its presence in Puerto Rico with the acquisition of an additional stake of 6% in Metropistas. This concessionary company operates the PR-22 toll road, the busiest on the island, which joins San Juan joins with the city of Hatillo and the PR-5 toll road, which crosses the San Juan metropolitan area to the business district of Bayamón. Thus, Abertis consolidates its position as the controlling shareholder of the company and highlights the strategic importance of Puerto Rico as an associated state of the United States, within its aim of growing within the world’s largest economy. Metropistas is undergoing a significant process of operational innovation in its infrastructures. Whereas in 2014 the installation of the so-called Dynamic Toll Lanes (DTL or dynamic tolls) was in implemented with positive results terms of improvement of income, in 2015, Metropistas and Sanef ITS, Abertis’s toll technology subsidiary, will join their know-how for the design and installation of a new barrier-less toll system, which will improve the current electronic system and will allow an increase in the use of electronic devices. its Also in 2015, Metropistas will continue with the investment plan improvement and safety of its roadways and at the same time, it will reinforce its efficiency plan, which has led to significant cost savings during the year. for Abertis also controls the concessionary company Toll roads de Puerto Rico (APR), which has managed the Teodoro Moscoso bridge (in the city of San Juan) for 20 years. In 2015, APR will implement a new maintenance plan for this important infrastructure. Puerto Rico APR Metropistas Arecibo Dorado San Juan Vega Baja Barceloneta Manatí Vega Alta Cataño Bayamón Guaynabo 24 Colombia United Kingdom In Colombia, Abertis has a 40% stake Abertis’s presence in the United the contract for access control of the new cargo terminal of the Eurotunnel, the tunnel linking France and the United Kingdom under the English Channel. The new toll technology, which combines teletoll collection and video for vehicle control, will allow for increasing the capacity of the infrastructure, improving safety and lowering its operating costs. In addition, Abertis maintains its presence its in the United Kingdom through 33.3% stake in RMG, the holder of the concessions for the A1-M and A419/417 motorways (74 kilometres). in the company Coviandes, which is the holder of the concession of the 86 kilometre road linking Santa Fe de Bogotá with Villavicencio. The infrastructure is a strategic road axis that connects the plains of the Amazon rainforest (where major oil and agricultural production takes place) with the capital and the north of the country. Coviandes is immersed in a major project for the enlargement of the central section of the road and the improvement of its facilities, on which it will invest a total of 600 million euros in the 2010-2017 period. Colombia Coviandes Bogotá Villavicencio Toll roads Kingdom was reinforced in 2014 with the new Sanef ITS offices in the city of Leeds. From there it directs the largest project in the country: the management of the new toll system at Dartford Crossing, one of the main entry points to the city of London, with traffic of over 135,000 vehicles a day. The new system, which came into operation in December 2014, involved the transformation of a traditional toll into a free toll or barrier-less “free flow” toll system. Meanwhile, the number of projects has continued to grow. In 2014, Abertis’s toll technology subsidiary was awarded united Kingdom RMG Peterborough Gloucester Cirencester Sawtry Alconbury Swindon 25 Ireland Since 2008, Abertis’s toll technology subsidiary, Sanef ITS, has managed the barrier-less “free flow” toll system of the M-50 Ring-Road to the west of Dublin in Ireland, with an average daily intensity of 120,000 vehicles. The M-50 is integrated within the Interoperability Management Services Provider (IMSP), a network of interoperability electronic toll payment systems on several motorways in the country, which is also managed by Sanef ITS. United States Abertis has offices in the United States since 2006, reflecting its commitment to the world’s largest economy as a strategic market for future growth. In the United States, Abertis’s toll technology subsidiary, Sanef ITS, has installed and maintains the Newport Pell Bridge toll system in the State of Rhode Island, where it has integrated a mixed system of traditional toll and barrier- less “free flow” toll to manage the traffic of over 35,000 vehicles a day. The new system allows for improving the fluidity of passage through the toll, which has meant a reduction in congestion at the busiest hours. Moreover, during 2014 work has continued with the Alliance for Toll Interoperability (ATI) in the pilot project for the development and operation of a platform –Interoperability Hub– that allows the member concessionary companies to share the information of users so that these can travel through different States with a single teletoll system and a single bill. The product developed by Sanef ITS, called FastToll Interop, has proven to be the best solution for offering interoperability at the national level in the United States market. So far, over 12 concessionary companies have joined ATI and it is expected that more may join in 2015. Toll roads Canada Abertis’s in Canada its toll Sanef ITS, which has continued to grow in the country. is channelled through subsidiary, technology presence In 2014, the subsidiary has been awarded the contract for the Blue Water Bridge Canada (BWBC) toll system, which covers the border between Canada (Ontario) and the United States (Michigan); an infrastructure with a volume of 10,000 transactions a day. In addition, Sanef ITS has the concessions for managing electronic toll collection in Vancouver (British on two bridges Columbia), the Golden Ears Bridge and the Port Mann Bridge, the largest North American toll bridge, which handles more than 110,000 vehicles per day. The advanced barrier-less “free-flow” toll system installed on both bridges has allowed for the reduction of traffic congestion in the region and has cut the travel times of the users. 26 Toll roads Concessionaire companies APR Metropistas Ausol GCO (*) 49.9% of voting rights (**) 57.6% of voting rights Other stakes Coviandes Coninvial (**) RMG % stake 100.0% 51.0% 31.6% (*) 48.6% (**) % stake 40.0% 40.0% 33.3% Km. 2 88 119 56 265 Km. 84 74 180 Concession end 2044 2051 2020 2018 Concession end 2018 (*) Country Puerto Rico Puerto Rico Argentina Argentina Country Colombia Colombia 2026 United Kingdom (*) Concession end subject to meeting estimated revenue targets and forecast for 2018. (**) Company in the construction business for Coviandes. ADT APR Metropistas GCO Ausol Total CONS. RESuLTS IFRS (millions of euros) (Contributions to Abertis consolidated)(**) Operating revenue EBITDA EBIT Investments Operational investment Expansion investment 2014 15,847 66,714 77,299 86,405 77,364 2014 255 109 73 2014 3 35 2013* 16,468 67,015 78,990 87,887 78,491 2013* 208 78 61 2013* 3 5 var % -3.8% -0.4% -2.1% -1.7% -1.40% Var % 22.7% 40.6% 19.1% (*) Restated 2013 figures considering the impact of the entering into force of IFRS 10 and IFRS 11 (**) At the exchange rate for each period 27 Telecommunications infrastructures Telecommunications infrastructures 28 division The telecommunications has infrastructure undergone a major transformation in 2014. Abertis’s satellite infrastructure business has its operations focused and strategic approach on Hispasat. The terrestrial infrastructure business, operated by Abertis Telecom Terrestrial, has begun a reorganisation process to meet one of the strategic objectives of the group for the period 2015-2017: making progress in 2015 in the scenario of an IPO that will support the company’s growth and internationalisation process. which are characterised by their critical and resilient nature in the face of crisis situations that require a high degree of reliability in communications. its Telecom commitment Finally, in the line of activity of Smart Terrestrial Cities, Abertis reinforces the opportunities that are opened up with the explosion of the “Internet of Things” based on the communication and interaction between devices and connected sensors. to Telecommunication towers 8,000 2014, Terrestrial In terrestrial division telecommunications strengthened the two cornerstones of years: in internationalisation and diversification of its lines of business. Abertis’s strategy recent its The acquisition of TowerCo, the operator of the mobile phone towers serving the motorway networks in Italy, has been a strategic and qualitative leap for the internationalisation of the division. Mobile phone towers is one of the main growth vectors for telecommunication infrastructures and network operators in Europe. The incorporation of the assets of mobile telephony in Italy, together with agreements with mobile operators in Spain to operate a part of the sites that make up the network, has consolidated this commitment by the diversification of business areas and has been crystallised in the form of a new franchise that today already provides nearly a third of the income of Abertis Telecom Terrestrial. It can be expected that this trend towards the outsourcing of the assets that comprise the networking infrastructure by the mobile phone operators will have continuity in the coming years, as this has been confirmed by some of the deals that have been announced or have materialised in recent months. In March 2015 an agreement with Italian mobile telephony operator Wind has been announced whereby, once the transaction Telecommunications infrastructures has been closed, Abertis Telecom will take over a portfolio of almost 7,400 phone signal transmission towers in Italy. The company has thus confirmed leading position among European its telecommunications infrastructure operators. In 2014, the business of radio and television signal broadcast has focused efforts on the implementation of the so-called Digital Dividend in Spain –the release of the 800 MHz bandwidth for use by mobile telephony and data services–. This process is developped at the same time with the reconfiguration of the television sector in the country, so that, in accordance with the forecasts of the DTT technical plan presented in September 2014, throughout 2015 it is expected that 5 new channels will be auctioned off to complete the current audiovisual map. Among the issues that will set the 2015 agenda and will have an impact in the medium and long term, it is worth mentioning the holding of the World Radiocommunications Conference, which will discuss radioelectric spectrum policy. Abertis Telecom actively participates in the sectoral working groups that contribute towards the definition of the European Union’s stance. Similarly, the company will continue to consolidate its position in the supply of the security and emergency networks operated for the security forces and 29 Satellites 7 Telecommunications infrastructures Satellites Hispasat is the ninth worldwide satellite operator, and a leader in the distribution of content in Spanish and Portuguese, with a strong presence in the Iberian Peninsula and Latin America. It has four orbital positions and seven operating satellites, plus other three under construction. 2014 was a special year for Hispasat, as it celebrated its 25th anniversary. A quarter of a century in which the company has gone from being a local satellite operator, large public component, to with a becoming a reference company, a driving force of the country’s aerospace industry, with a majority of private capital and with the will to become one of the five largest satellite operators in the world. During the year, Hispasat grew from both the acquisition of new orbital rights as well as through the launch of a new satellite, which has allowed it to continue increasing the size and scope of its satellite fleet. A particularly noteworthy milestone in this area was the agreement with Intelsat, the leading provider of satellite services in the world, for the joint operation of their capabilities in the 55.5° West orbital position, where the Amazonas 1 of Hispasat is now located. Its services will have continuity with the new Intelsat 34 satellite. The Group was awarded new operating rights in the 61º West position for the next 15 years, at an open auction held by the Brazilian Government. With regards to new launches, 2014 saw that of the Amazonas 4A, designed to provide additional capacity in Latin America. In the next few years, it is expected that the company will put into orbit the Hispasat AG1 –in 2016–, the Hispasat 1F and the Amazonas 5 –in 2017. innovation, Hispasat With regards to has consolidated its position as a leader in the Ultra High Definition satellite television sector through its open channel, the Hispasat 4K, which has been made available to the industry to foster the R&D in this technology. In 2015, Hispasat will continue to work on its growth and expansion strategy, which has the aim of making the Group a global player in the satellite communications sector. To do this, it will continue to improve its competitiveness and efficiency and it will analyse the opportunities that may arise in markets with strong growth potential, such as Middle East, East and Southeast Asia, the countries of the Andean region –Chile, Colombia, Peru, Ecuador– or Mexico. 30 Telecommunications infrastructures % stake 100% 100% 100% 100% 100% 60.10% 100% 57.05% Centres Country - Spain 2,729 sites Spain 618 sites Spain 3,825 sites Spain 321 sites Italy - Spain - Spain 7 Satellites Spain-Brazil-Mexico % stake 41.8% 29.5% var % 31.5% Var % 13.4% 456.3% 7.6% 573.8% -8.1% 1,202.3% 2014 80,688 2014 436 188 179 161 88 37 2014 15 6 339 145 2013* 61,348 2013* 384 34 166 24 96 3 2013* 14 8 155 149 Company Abertis Telecom Terrestrial Retevisión Tradia Abertis Tower Towerco Adesal Abertis Telecom Satellites Grupo Hispasat Other stakes Torre Collserola Cota Equipment maintained CONS. RESuLTS IFRS (millions of euros) (Contributions to Abertis consolidated) Operating revenue Telecom Terrestrial Operating revenue Telecom Satellites EBITDA Telecom Terrestrial EBITDA Telecom Satellites EBIT Telecom Terrestrial EBIT Telecom Satellites Investments Operational investment Telecom Terrestrial Operational investment Telecom Satellites Expansion investment Telecom Terrestrial Expansion investment Telecom Satellites (*) Restated 2013 figures considering the impact of the entering into force of IFRS 10 and IFRS 11 31 Economic and financial information Economic and financial information Consolidated figures During the financial year 2014, the Abertis Group has continued its business activities within the framework set by the large established strategic lines, which bank on selective growth through consolidation and the strengthening of its position in companies it already has holdings in. This has been the case of taking the control of Metropistas, the acquisition of an additional 8.59% of the share capital of Infraestructura Dos Mil, SA (I2000) and the acquisition of the Infraestructuras Americanas, SLU company, which holds 42.3% of Inversora de Infraestructuras SL (Invin). the In telecommunications business, the Group continues to work to further expand its presence in the mobile phone towers market. Continuing with the strategy of focusing and optimising its portfolio of assets, it has continued with the process of in the airports sector disinvestment started in 2013. Similarly, in 2014 it sold 5.01% of the share capital of Eutelsat. The accompanying P&L account presents at their net present value of 0 revenue and expenditure for the construction or improvement of infrastructure carried out during the year (689 million euros in revenue and expenditure in 2014 and 546 million euros in 2013) which for the purposes of presentation in Abertis’s consolidated annual accounts are recorded separately in compliance with the provisions of IFRIC 12. (millions of euros) Operating revenues Operating expenses EBITDA EBITDA at constant exchange rate Amortization and impairment losses Operating profit Financial result Equity method companies Pre-tax profit Corporate Tax Corporate reorganisation income Profit for the year Minority interest Profit attributable to shareholders 2014 2013* 4,889 (1,767) 3,122 3,122 (1,254) 1,868 (736) 22 1,154 (369) 19 805 (150) 655 4,568 (1,742) 2,826 2,748 (1,114) 1,712 (736) 49 1,024 (326) 49 747 (130) 617 Var. 7.0% 1.5% 10.5% 13.6% 9.1% 12.7% 7.8% 6.2% * Restated 2013 figures considering the impact of the entering into force of IFRS 10 and IFRS 11. KEy FIGuRES 2013-2014 +7% Operating revenue 4,889 4,568 +10% +14% EBITDA EBITDA at constant exchange rate 3,122 3,122 2,826 2,748 +9% EBIT 1,868 1,712 l 2014 l 2013 +6% Shareholder profit 617 655 32 Economic and financial information Gross operating profit (EBITDA) The gross operating profit increased by 10.5% in comparison with the closing of 2013, due to the impact of the assets acquired in late 2013 and at the beginning of 2014 and thanks to the plan started in prior years to implement a series of measures to improve efficiency and optimise operating costs, in which the Group has continued to press forward. After finishing above the expectations of the 2011-2014 efficiency plan, the Group is already working on a new plan for the 2015-2017 period, which should allow it to consolidate the efficiencies obtained to date and continue with efficiency improvement and the optimisation of costs. Profit has increased compared with 2013 in line with increased gross operating profit. In 2014, the average workforce headcount reached 16,580 workers, 1% less than that of the prior financial year, as a result of the consolidation of the modernisation and efficiencies plan initiated in 2011 and which culminated in 2014. Revenues LThe main figures of the Group’s profit and loss account have been affected by the consolidation through the global integration of Hispasat in the financial year (after the acquisition of an additional 16.42% in 2013), Metropistas (after the acquisition of the additional 6%) and the purchase of 2,944 phone towers throughout 2013 and 2014. Of these, 1,090 towers were acquired in November, a transaction that will have a greater impact in financial year 2015. At the closing of financial year 2014, the Group’s toll roads business activity displayed a positive evolution, thanks to the increases recorded in the main countries in which it operates, including Spain –where there are clear signs of recovery of the business activity– and France –a country characterised by a certain degree of stagnation in the prior financial year–. The toll roads business activity in Brazil and Chile continues to grow more than the other countries in which Abertis is present. On the other hand, the activity in the infrastructures telecommunications sector also presents a clearly positive evolution, as a result of the acquisition of telecommunications towers by Abertis Telecom Terrestrial and the taking of control of Hispasat. At 2014, the Group’s toll roads business activity displayed a positive evolution, thanks to the increases recorded in the main countries in which it operates Operating revenue (millions of euros) Toll roads Telecommunications Terrestrials Telecommunications Satellites Corporate and other services 2014 2013* Amount 4,262 436 188 3 % 87% 9% 4% 0% Amount 4,147 384 34 3 % 91% 8% 1% 0% EBITDA (millions of euros) Toll roads Telecommunications Terrestrials Telecommunications Satellites Corporate and other services 2014 2013* Amount 2,816 179 161 -35 % 90% 6% 5% -1% Amount 2,670 166 24 -34 % 94% 6% 1% -1% TOTAL 4,889 100% 4,568 100% TOTAL 3,122 100% 2,826 100% Spain France Brazil Chile Argentina Puerto Rico Rest of the world TOTAL 1,869 1,567 915 208 155 102 72 38% 32% 19% 4% 3% 2% 1% 1,703 1,519 866 233 192 16 38 37% 33% 19% 5% 4% 0% 1% Spain France Brazil Chile Argentina Puerto Rico Rest of the world 1,384 1,015 441 156 46 63 15 44% 33% 14% 5% 1% 2% 0% 1,183 973 423 164 67 11 4 42% 34% 15% 6% 2% 0% 0% 4,889 100% 4,568 100% TOTAL 3,122 100% 2,826 100% * Restated 2013 figures considering the impact of the entering into force of IFRS 10 and IFRS 11. 33 Amortisation, financial result There was an increase of 13% in the amortisation, mainly due to the impact of the assets acquired at the end of 2013 and the beginning of 2014. The financial result of the financial year includes the effect of the capital gain from the sale of the remaining 5.01% of the share capital of Eutelsat for 17 million euros (in 2013, 20 million euros were obtained from the sale of 3.15%). With respect to the finance charges associated with the debt, these are affected by the slight increase in the cost of the Group’s debt, due to the increased relative weight of the debt in the non-euro zone with higher interest rates. Economic and financial information Corporate Tax The increase in 2014 of the expense for Corporate Tax is mainly affected by the increase in the Group’s taxable income, as well as by the reform of the Chilean tax system, which establishes a gradual increase in the rate of Corporate Tax in Chile for five years, from 21% in 2014 to 27% as from 2018. Results The consolidated profit for the financial year 2014 attributable to shareholders, reached 655 million, 6.2% greater than that of 2013. Cash flow Equity method companies In 2014, Abertis generated a gross cash flow (before investments and dividends) of 1,566 million euros. The profit for the financial year 2014 reached 655 million The lower contribution of recorded using the companies the equity method is mainly the result of the taking of control of Hispasat, as during 2013 these were consolidated using the equity method until its taking of control in November of the same year, as well as a lower contribution of Coviandes and of Autopista Central. Gross Cash flow (millions of euros) Gross Cash flow 2014 2013* Var. 1,566 1,546 1.3% * Restated 2013 figures considering the impact of the entering into force of IFRS 10 and IFRS 11. 34 Balance sheet As of 31st of December 2014, the total assets amounted to 27,769 million euros, which –despite the investments– showed virtually no variation with respect to the closing of 2013, due to the impact of the disinvestments made and the depreciation of the Chilean and Argentinean peso at the end of the financial year. Of the total assets, around 55% relate to fixed assets and other intangible (mainly concessions, without assets including goodwill), in line with the nature of the Group’s business relating to the management of infrastructures, increasing slightly as a result of the acquisitions and investments made. total investment The the operational segments of toll roads and telecommunications in 2014 amounted to 1,598 million euros, of which 91% in Economic and financial information relate to expansion investment. Mainly, the acquisition of mobile phone towers and 100% of TowerCo, the acquisition of an additional 6% of Metropistas, the acquisition of an additional 42.3% of Invin Infraestructuras Americanas, S.L.U.), as well as the expansion of the capacity of the toll roads (especially those located in Brazil dependent on the Federal State). (acquisition of The consolidated net equity reached 6,010 million euros, 8.4% lower than that at the closing of the 2013 financial year. This was mainly affected (apart from by the result generated in the financial year) by perimeter changes associated with the acquisition of an additional 42.3% of Invin up to reaching 100% of its share capital, as well as the impact of the purchases of own shares in the financial year which involved a net impact on the net equity of -137 million euros. ASSETS 70% TANGIBLE AND INTANGIBLE FIXED ASSETS 30% OTHER ASSETS LIABILITIES 22% NET EQUITY 58% FINANCIAL DEBT 20% OTHER LIABILITIES (millions of euros) ASSETS Long term assets Tangible and intangible fixed assets Holdings in associates Other long term assets Short term assets Other short term assets Cash and cash equivalents 2014 23,777 19,561 933 3,283 3,676 1,434 2,242 2013 LIABILITIES 23,094 Net equity 18,687 1,132 3,276 Capital and premium Reserves Results Non-controlling interest 4,144 Long term liabilities Debt 1,100 Other long term liabilities 3,043 Short term liabilities Debt Other short term liabilities Non-current assets held for sale and discontinued operations 316 532 Liabilities associated with assets held for sale and discontinued operations 2014 6,010 2,695 (193) 655 2,853 18,552 14,726 3,825 3,090 1,668 1,422 116 2013 6,562 2,567 334 617 3,044 18,130 14,582 3,549 2,953 1,747 1,206 123 TOTAL ASSETS 27,769 27,769 TOTAL LIABILITIES 27,769 27,769 *Restated 2013 figures considering the impact of the entering into force of IFRS 10 and IFRS 11 35 Economic and financial information Investments The most significant investments in expansion in the year have been as follows: • In toll roads: the acquisition of an additional 42.3% of Invin and of an additional 6% of Metropistas, the expansion works on the AP-7 toll road in Spain, investments in France relating to the Contrat Plan; as well as several expansions, road pavings and signallings in Brazil. • In telecommunications infrastructures: the acquisition of 100% of TowerCo, the acquisition of 1,733 mobile phone towers from Telefónica and Yoigo, as well as own investments of Hispasat referring to the different satellites under construction. operational significant The most investments have taken place in the toll tollbooth sector, mainly refurbishment and modernisation of the existing network. roads (millions of euros) Investments Toll roads Spain France Brazil Chile Resto Telecom Terrestrial Satellites Holding/Serviabertis Total OPERATING EXPANSION INORGANIC EXPANSION TOTAL Amount 111 20 41 45 2 3 15 6 8 % 79% 14% 29% 32% 1% 2% 11% 4% 6% 140 100% Amount 667 36 91 536 1 3 20 145 0 832 % 80% 4% 11% 64% 0% 0% 2% 17% 0% 100% Amount 306 0 0 0 273 32 320 0 0 626 % 49% 0% 0% 0% 44% 5% 51% 0% 0% Amount 1,084 56 132 581 277 38 355 151 8 % 68% 4% 8% 36% 17% 2% 22% 9% 1% 100% 1,598 100% 36 Economic and financial information Financial management During 2014, Abertis maintained its Ebitda generation capacity with 3,122 million euros (comparable to 2,826 million euros in 2013). The Group’s financial strength has enabled financial management to go to the markets in order to optimise the maturity profile of the company’s borrowings and reduce their financial cost. Major operations include the following: • The formalisation of two refinancing operations of bonds issued in prior years: - With maturity on February 27, 2025 and a coupon of 2.5%, Abertis Infraestructuras made a bond issue of 700 million euros. At the same time, Abertis interchanged part of bonds issued by Abertis in 2007 and 2009, the nominal value of which similarly totalled 700 million euro (485 million euros relating to bonds maturing in 2016 and a coupon of 4.625% and 215 million euros relating to bonds maturing in 2017 and a coupon of 5.125%). - Hit made a bond issue of 450 million euros with a maturity of 10 and a half years and a coupon of 2.25%. At the same time, Hit interchanged the bonds issued in their day by Hit Finance, BV for an amount of 400 million euros maturing in March 2018 and a coupon of 5.75%. In both cases, once the swap had been made, the referred acquired bonds were amortised and cancelled by the Group. • The private issues of bonds by Abertis Infraestructuras, for an amount of 350 million euros with a coupon of 3.125% and maturities of between 10 and 12 years. • In 2014, some of the companies of the toll roads business in Brazil made bond issues for a total of 1,550 million Brazilian reais, 482 million euros as at the 2014 closing exchange rate. Including the issue made by Abertis PDC (100% Abertis) to repay a bond of 330 million Brazilian reais issued by the company PDC (51% held by Abertis) which matured in July 2014 and had a CDI coupon of 12m+2.78%. • In order to finance the acquisition of new telecommunications infrastructures and to provide the company with financial capacity for future operations, Abertis Telecom Terrestrial obtained bank financing for a total amount of 800 million euros, of which at the end of 2014 it had drawn 414 million euros. • Due to the maturity of 200 million euros in June 2015 in Avasa, and as part of its prudent management of debt maturities, during the month of November the refinancing was closed including a line of 200 million. • During the financial year Hispasat has signed several bank loans for a total amount of 236 million euros, of which as of 31st of December 2014, 113 million euros had been drawn. Abertis has increased its net financial debt by 859 million euros, reaching 13,789 million euros. This increase is mainly due to the impact of the consolidation in 2014 of Metropistas by global integration and the acquisition of 100% of Infraestructuras Americanas, which meant an increase in the Group’s net debt of 506 million euros and 198 million euros, respectively, with respect to that existing at the closing of 2013. In addition, the effect of the exchange rate as of 31st of December 2014 entailed an increase in the Group’s net debt of 81 million euros. In this sense, the impact of the sale during the period of 5.01% of the capital of Eutelsat for 274 million euros, as well as that of AMP/GAP for 174 million euros has been offset, by among others, the investments made in expansion during the period. (millions of euros) Net debt Net debt / EBITDA 2014 13,789 4.4x 2013 (*) 12,930 4.5x * Restated 2013 figures considering the impact of the entering into force of IFRS 10 and IFRS 11. 37 Economic and financial information Financial Structure Risk management DEBT MATuRITy 8% LESS THAN 1 YEAR 18% BETWEEN 1 Y 3 YEARS 24% BETWEEN 3 Y 5 YEARS 37% BETWEEN 5 Y 10 YEARS 13% OVER 10 YEARS Following the policies set out by Abertis’s Board, the Group’s financial structure seeks to limit the risks to which it is exposed by the nature of the markets in which it operates. With regards to the distribution of the debt with third parties, as at year-end 2014, the long-term debt remained at 92% of the total as in 2013. On the other hand, the average debt maturity as at the closing was of 6.0 years, compared with 5.4 years in 2013. To minimise its exposure to interest rate risk, Abertis maintains a high percentage of fixed-rate debt. At year-end 2014, the said ratio was 84% vs. 82% in 2013. At year-end 2014 Abertis Infraestructuras, SA has lines of credit with a total limit coming to 2,472 million euros (2,342 million euros in 2013). Abertis Group The operates internationally and its assets are spread geographically between Europe and Latin America. Given the nature of the credit markets in which Group companies operate and are financed, the Group is exposed to exchange rate risk, interest rate risk, credit risk and liquidity risk. The management of the various financial risks is supervised by Finance Management with prior authorisation from Abertis’s highest executive and as part of the policy approved by the Board of Directors. TyPE OF DEBT 84% FIXED 15% VARIABLE Agency FitchRatings Long term Short term Standard & Poor's Long term Date of assessment 29/07/2014 29/07/2014 27/06/2014 Qualification Outlook BBB+ F2 BBB Estable Estable 38 Economic and financial information Abertis on the stock exchange In 2014 the stock markets were characterised by growth in the main global stock indices: US (S&P: +11.4%), Japan (Nikkei: +7.1%) and by flat growth in general terms in the main European indices: Germany (DAX: +2.7%), France (CAC 40: -0.5%) and Italy (FTSE MIB: +0.2%). In Spain, the Ibex 35 closed the year up by +3.7%, after an increase of +21.4% in 2013. The index moved within a wide band throughout 2014, ranging from the annual maximum on the 19th of June (11,187.0 points) to the annual minimum on the 16th of October (9,669.70 points). 39 Share performance The Abertis share closed 2014 with an appreciation of 6.8%, at a price of 16.43 euros/share following a revaluation in 2013 of 36.5%. Throughout the financial year, the maximum closing price was set on the 1st of December (17.22 euros) and the minimum closing price on the 16th of October (14.20 euros). From the minimums of the year, Abertis’s share price has appreciated by 15.7%. Abertis closed 2014 with a capitalization of almost 15,000 million euros, standing at the 12th position in the ranking of the Ibex 35 index by market capitalisation. Economic and financial information STOCK MARKET APPRECIATION Accumulated variation +78% over last ten years CAGR: +6.0% CAGR: compound annual growth rate. 2014 6.8% 2013 36.5% 2012 5.7% 2011 3.9% -10.1% 2010 2009 31.0% -40.0% 2008 2007 2.9% 2006 11.1% 2005 37.8% EvOLuTION OF ABERTIS’S 2014 SHARE PRICE (ADJuSTED FOR CAPITAL INCREASE) 17 04/02 Acquisition of 6% of Metropistas 03/02 Sale of Codad 26/02 Results 2013 01/04 GSM 20/03 Issue 350 million bonds 12/05 Acquisition of TowerCo 21/05 Acquisition of Irvin 03/06 Sale of Eutelsat 19/09 Sale of HIT bonds 17/09 Sale of Gap 04/11 Payment interim dividend 2014 30/10 New Strategic Plan published 17/06 Issue 700 million bonds 18/09 Extension Autovías 14-28/05 Bonus share issue 16 15 14 13 12 11 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Des. l Abertis share price l IBEX 35 share price 40 Economic and financial information Profitability Dividend to offer Abertis’s goal its is shareholders the best combination return. The of growth and company’s business actions and strategic decisions are geared towards generating value for its shareholders. In 2014, apart from the annual revaluation of the share price of 6.8%, one must add the payment of dividends and the share capital increase issued. In April 2014, Abertis paid a complementary dividend charged to financial year 2013 of 0.33 euros per share, whereas in the month of November it paid a dividend on account of the financial year 2014 for a gross amount of 0.33 euros per share. Abertis’s Board of Directors has agreed to propose to the Ordinary General Shareholders’ Meeting of 2015, which will be held on the 24th of March, in addition to the share capital increase issued of 1x20, a complementary dividend charged to financial year 2014 of 0.33 euros gross per share. This amount, added to the interim dividend paid in November 2014, amounts to direct shareholder return in the form of regular dividends of 0.66 euros gross, corresponding to 2014, which sums up a maximum amount to be paid as dividends of 592.9 million euros, 5% more than the sum paid for 2013. DIvIDENDS PAID (MILLIONS OF EuROS) l Interim dividend l Complementary dividend l Extraordinary dividend 1,302.9 +194% 304.0 +5% 357.5 +18% 402.2 +12% 422.3 +5% 443.4 +5% CAGR: +8.7% 564.6 592.9 +5% +5% 537.8 +5% 2006 2007 2008 2009 2010 2011 2012 2013 2014 41 Economic and financial information Capital increase The General Shareholders’ Meeting held on the 1st of April 2014 agreed to increase the issued share capital, in the proportion of one new share for every 20 old ones. Between the 14th of May and the 28th of May 2014, the rights were negotiated with a maximum price of 0.850 euros and a minimum price of 0.780 euros. The fair value of the rights was 0.804 euros. The new shares were admitted to trading on 16th June with the same voting and economic rights as the existing shares. 31/12/05 31/12/06 31/12/07 31/12/08 31/12/09 31/12/10 31/12/11 31/12/12 31/12/13 31/12/14 Year of exit (1) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 41.0% 22.0% 59.6% 66.0% 13.5% 36.0% 31/12/04 Year of entry(1) 2004 31/12/05 2005 31/12/06 2006 31/12/07 2007 31/12/08 2008 31/12/09 2009 31/12/10 2010 31/12/11 2011 31/12/12 2012 31/12/13 2013 Abertis Ibex-35 with div. Abertis Ibex-35 with div. Abertis Ibex-35 with div. Abertis Ibex-35 with div. Abertis Ibex-35 with div. Abertis Ibex-35 with div. Abertis Ibex-35 with div. Abertis Ibex-35 with div. Abertis Ibex-35 with div. Abertis Ibex-35 with div. 10.7% -29.7% 9.0% 67.7% 83.7% 16.7% 19.4% -23.2% -4.4% 50.6% 35.2% 40.5% -4.2% 15.1% 5.3% -33.1% -10.9% -15.9% 35.9% 38.3% 42.9% 61.3% 1.4% 32.2% 45.0% 29.6% 2.9% 6.2% -9.5% 57.2% 104.8% 121.8% 84.4% 70.1% 33.2% 58.7% 46.3% 11.8% 51.5% 39.5% 9.2% 40.6% 29.5% -1.5% 11.4% 2.5% -2.8% -15.4% -21.9% -19.7% 34.4% 23.6% -37.3% -15.7% -20.6% -14.4% -6.6% 0.6% -7.4% -36.5% -12.2% -23.5% -29.5% -27.5% 51.1% 101.4% 119.4% 27.7% 38.1% 58.4% 45.8% 14.2% 20.4% 11.1% 63.7% 50.0% 11.6% -6.2% 1.7% 14.6% 5.5% -12.9% -19.7% -17.4% 77.8% 62.5% 19.8% 8.8% 31.6% 21.1% -5.2% -7.7% 71.7% 55.8% 11.4% 42.6% 31.3% 2.8% 57.0% 42.0% 38.8% 27.8% 11.0% 8.6% Notes: (1) Entry and exit on the last day of the indicated year. *** Market appreciation is considered as are bonus share issues and ordinary and extraordinary dividend yield. The possibility that the shareholder may have made additional outlays is not accounted for. 42 Economic and financial information Share capital and treasury share portfolio As at the 31st of December 2014, Abertis’s share capital amounted to 2,695 million euros, consisting of 898,305,042 ordinary shares represented in annotations in account, with a nominal value of three euros each, fully subscribed and paid up, all of them being of the same class. All the shares are listed on the four Spanish stock markets. Shareholder structure AAs detailed in the Corporate Governance Report 2014, which forms part of this Annual Report, significant shareholdings at the end of the financial year are: Fundación Bancaria Caixa d’Estalvis i Pensions de Barcelona “La Caixa” (23.12%), CVC (15.55%), Grupo OHL (13.94%) and Inmobiliaria Espacio (5.00%). DISTRIBuTION OF CAPITAL OWNERSHIP AT 14/12/31 increased by to increase of 128.3 million euros, In 2014, share capital 42,776,430 an corresponding to the bonus share issue. amounting shares, With respect to treasury share portfolio, at the end of 2014 Abertis was the direct holder of 9,425,121 shares, which accounts for 1.0492% of share capital, compared to the 950,955 shares it held in 2013 (0.11% of share capital at the end of that year). l 23.12% CRITERIA CAIXAHOLDING1 l 15.55% CVC2 l 13.94% GRUPO OHL3 l 5.00% INMOBILIARIA ESPACIO4 l 42.39% FREE FLOAT (1) Holding through Criteria CaixaHolding, SAU of 15.364% and Inversiones Toll roads, SL of 7.753%. (2) Holding through Trebol International BV, of which Trebol Holding SarL is the holder of 99.67% of the share capital and of the voting and financial rights. On 4 March 2015, Trebol International BV sold a total of 67,372,878 shares accounting for 7.5% of the share capital of Abertis. Following this disinvestment CVC now holds 8.1% of the share capital of Abertis. (3) Holding through OHL Emisiones, SAU of 13.925% and Grupo Villar Mir of 0.02%. (4) Inmobiliaria Espacio, SA is the indirect holder of 5% through an equity swap subscribed with Societé Générale Sucursal en España. 43 Economic and financial information Abertis and its shareholders and investors involving In 2014 a complete programme of activities institutional investors and financial analysts has been maintained involving meetings in the leading financial markets in Europe, the United States and Canada. This is necessary due to the Group’s worldwide and structure. Meetings have been held with 323 investment institutions (managers) in 23 cities, some of which have been visited on more than one occasion. Moreover, a total of 48 Relevant Facts have been sent to the Spanish Securities Market (CNMV). shareholder diverse Helsinki Stockholm Copenaguen Toronto Chicago New York 323 managers Amsterdam Bilbao Frankfurt London Brussels Paris Zurich Génova Barcelona Cascais Madrid 25 road shows (uSA, Europe and Oceanoa) 44 23 cities visited Sydney Melbourne Corporate social responsibility Corporate Social Responsibility The creation of the Corporate Social Responsibility (CSR) Committee in the bosom of the Board of Directors is one of the main milestones of 2014 in the field of the management of CSR in the organisation. Among other responds reasons, to the increase of the visibility of the economic, environmental, social and good governance (ESG) issues. formalisation this In this regard, it is worth mentioning the formal approval of the European Non- Financial Information Directive, as well as the incorporation of ESG issues in the new Capital Companies Law in Spain and the application of the Grenelle Law in France for Abertis’s activities, all of these formal requirements that Abertis has been responding to for several years. The CSR Committee is comprised of four directors or members of the Board of Directors, two men and two women, one of them of an independent nature and the rest of a proprietary nature. The functions of this new Committee include informing the Board of the general policy, objectives and programmes on CSR issues, as well as to ensure their adoption and monitor their degree of compliance, along with the review and information of the CSR Report and the recommendation of the strategy relating to the contributions to the community of Abertis Foundation. The Committee has directly participated in the identification process of relevant matters in the ESG realms for Abertis’s activity and their formal validation. This analysis consists in identifying the economic, environmental, social and good governance issues that are relevant, taking into account the activities of the organisation, the countries in which it operates and the expectations of the interest groups. Abertis’s materiality analysis has been coordinated by the organisation’s CSR unit and has enjoyed the participation of all subsidiaries and countries included in the CSR Report 2014, accounting for 95.2% of turnover. Based on the analysis of all the information gathered and the knowledge acquired in the more than ten years of Abertis’s experience with CSR, the key issues in CSR matters have been identified, which will constitute the cornerstones of the Action Plan which will be formalised during 2015: • Consumption of resources (materials, energy and water), climate change, generation and management of waste, noise and biodiversity. • Work health and safety, employment, training and professional development and diversity and equal opportunities. 45 • Road safety, the development of products and services with positive social and environmental impacts and the relationship with suppliers. • Transparency and accountability, ethical code and the regulatory framework by country, corporate governance and the prevention of corruption. In Abertis’s CSR Report (available at www. abertis.com), one can find more detailed information about the main actions and results of the financial year 2014 with regards to these aspects. Similarly, on the website and in the annual report of Abertis Foundation (www.fundacionabertis.org) information is available on the activities of the social action of the organisation, including those of the UNESCO Centre for the Reserves of the Biosphere. Content editing, production and coordination: Corporate Communication Department Design: Printed on environmentally friendly paper