Abertis Infraestructuras S.A.
Annual Report 2016

Plain-text annual report

INTEGRATED ANNUAL REPORT 2016 Index Letter from the Chairman 02 Letter from the Chairman Letter from the Vice-Chairman & Chief Executive Officer Abertis at a glance 14 Abertis at a glance 08 Letter from the Vice-Chairman and Chief Executive Officer A robust strategy 20 A business with great prospects 24 Industry trends and challenges 26 Strategy 32 Global footprint 48 Abertis in 2016 50 2016 Milestones 52 Awards and Recognitions Responsible Corporate Governance 56 Adaptation to the Code of Good Governance 58 Corporate Governance Structure 61 Management Team Compliance and effective risk management 64 Ethics and integrity 68 Risk control Safe and innovative infrastructures 74 Safety: our priority 80 Intelligent technology and engineering 84 Continous investment 88 Efficient toll roads 91 Client focus Value creation Shareholders 99 Figures and results 110 Efficiencies 112 Financial management 116 Shareholder remuneration Society 121 Fiscal contribution 124 Contribution to the environment 128 Contribution to the community 132 Supplier management and supply chain Human team 135 Committed to talent 140 Professional development 146 Health and Safety 2017 Outlook About the report 152 Strategic plan: commitment and delivery 155 CSR Master Plan 156 2017 guidelines 160 Methodology 746102591830Letter from the Chairman 104 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Letter from the Chairman 1 Dear Shareholders, I am pleased to present you the integrated annual report for the 2016 financial year. Following the provisions of the United Nations Global Compact, the Progress Report for this financial year consists of the Annual Report and its associated annex, which provides a follow up to the Corporate Social Responsibility Master Plan. This is a path toward integrating financial and non- financial information, revealing the direct link between these two realms, and meeting one of the main expectations of our stakeholders. In economic terms, the information provided in this report reflects the good performance of our business through 2016, which was driven by a growth in traffic and the efforts made to improve asset management. The macroeconomic data published by international institutions point to a recovery that continues to consolidate after the long crisis that has hit the majority of the developed economies over the last few years. Nevertheless, some factors prevail that continue to pose a risk to our growth rate and which force us to remain vigilant. Our prudent investment policy, debt optimization and long-term vision, together with a strategy of international expansion based on a combination of the security that the most mature markets provide and the focus on potential high growth markets coupled with a legal framework that fosters public-private partnership are our best tools for embracing the future with greater guarantees. 05 1 . L e t t e r f r o m t h e C h a i r m a n The feeling of uncertainty that has blanketed the global economy and politics in 2016 has mirrored the behavior of the Spanish stock market, which closed the year with a slight drop of its selective IBEX-35 stock index. Although not spared from this trend, the value of our share has been capable of absorbing with limited impact the increase in supply – driven by the departure of our second shareholder – thanks undoubtedly to our broad shareholder base and to the trust that some of the main international investors have placed on us. The investment community has recognized in our share the long-term robustness and credibility of our company. As an example, a shareholder who acquired his/her shares toward the end of 2011 and held on to them until December 31st 2016 would have accumulated a profitability of 69% in these five years, including market appreciation, bonus share issues and dividend yield. Our 2015-2017 Strategic Plan forecasts an annual dividend increase of 10% in the period. If approved at the General Shareholders Meeting, the second dividend payment of 37 cents, added to the first dividend of 36 cents paid in the month of November, and the effect of the bonus share issue approved in the April 2016 General Shareholders Meeting, would imply an increase of more than 10% over the dividend in the previous year. In the sphere of Corporate Governance, I would like to highlight the continuous work accomplished by the Group in ensuring that transparency, participation, ethical behavior and good practice constitute the basis that inspires the culture of the entire organization. The changes to the shareholder structure during the course of 2016 and at the beginning of 2017 have redrawn the landscape of the Group’s ownership. More than 75% of the capital is currently free- float, with a portion thereof forming part of the portfolios of large institutional funds. After the latest changes to the Board of Directors in 2017, 9 of its 15 members (one of them is under selection process at the time while the Annual Accounts are being developed) will be independent board members, therefore widely satisfying the recommendations of the Code of Good Governance of Listed Companies. I would like to highlight the progress made in the sphere of gender diversity in our Board. The number of women directors represents the 40% of the total exceeding the 2020 objective stablished in the aforementioned code. 06 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 The geographical expansion of Abertis, which has enabled us to generate over 70% of the revenue abroad, demands greater geographical and professional diversification of the members of the Board of Directors. As a result, we now have members from France, Italy and the United States . As regards to the Corporate Social Responsibility, Abertis has renewed its commitment with the United Nations Global Compact, by explicitly adding the Sustainable Development Goals – known as Agenda 2030 – to the Group’s strategies and plans of action, and through their inclusion in the CSR Policy along with the updating of the materiality assessment. The activities of the Group in the social, environmental and good governance spheres have earned Abertis a spot one more year in several international indices such as the Dow Jones Sustainability Indices (World) and MSCI. Furthremore, the Company has been included for the first time in the FTSE4Good index. Along similar lines, the Carbon Disclosure Project initiative has recognized the progress achieved by the Group’s companies, which has prompted Abertis’ inclusion in the “A” List, the highest ranking in terms of climate change policy. To conclude, on behalf of the Board of Directors I would like to thank you for the trust you place on us day after day and for supporting the work of the more than 15,000 persons that make Abertis a global reference in terms of effective and responsible infrastructure management. Thank you. Salvador Alemany Mas Chairman 11 1 . C a r t a d e l P r e s i d e n t e Letter from the Vice-Chairman and Chief Executive Officer 210 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Letter from the Vice-Chairman and Chief Executive Officer 2 Dear Shareholders, Abertis has closed 2016 with a solid growth of its key financial and operational figures and a high degree of compliance with its 2015-2017 Strategic Plan. The company has strengthened its international presence with three important operations that bring two new countries to its portfolio. In January, the acquisition of full control of Autopista Central (Chile). In September, our entry in Italy through the acquisition of 51.4% of A4 Holding, which operates the A4 and A31 toll roads in the north of the country. And, toward the end of the year, the agreement for the purchase of two toll roads in India, representing the Group’s first step in the Asian continent, a market of enormous potential in the field of infrastructures. Growth has also come as a result of the extensions to our concession periods. At Abertis, we firmly believe in the benefits of public-private partnership, not only for the administration, but also for the private sector and the society in terms of economic drive, employment and modernization of a public asset such as roads. In this sense, I wish to highlight France’s firm committment to this model. Our French subsidiary Sanef has already begun some of the more iconic works of the Plan Relance , which anticipates investments of 600 million euros in exchange for an extension of the country’s concessions, and is preparing the implementation of the new Plan Relance II announced in January 2017. 11 2 . V i c e - C h a i r m a n a n d C h i e f E x e c u t i v e O f f i c e r Progress in this same field has also been achieved in Puerto Rico with the conclusion of an agreement with the Government of the island in 2016 for a 10-year extension to the Metropistas concession. Thanks to agreements that have been signed in the last years and to the constant investment in our asset portfolio, between 2011 and 2017, the Group has increased the proportional equivalent average life of its concessions by 9 years up to an average of 22 years. We are confident that our bet on public-private partnership in other countries of our portfolio such as Chile, Brazil and Argentina will generate new agreements in the coming months. Meanwhile, the continuous increase in traffic in our main markets in 2016 beyond our initial estimates (IMD: +1.3%) has driven the main figures of the Group both in terms of revenue (+13%) and Ebitda (+20%). Also in 2016 Abertis has undertaken liability management operations of more than 2,000 million euros both at the corporate level and in its subsidiaries. As regards corporate debt, the month of May witnessed Abertis’ largest bond issue in its history: 1,150 million euros at 1.375%. And in November, a new bond refinancing operation amounting to 500 million euros at 1%, the lowest coupon in the history of Abertis. As a result, the average cost of the Corporation’s debt was reduced from 4.1% to 3.1% in 2016. We know that Abertis’ growth would not have been possible in the absence of a solid strategy and a clear business model that is based on our long-term vision and industry best practices, in order to provide our clients with the best experience possible: a fast, comfortable and, above all, safe journey. For this reason, road safety is a priority for the Group. Our Road Safety program combines initiatives that are linked to road safety management best practices and continuous work in the field of road safety education and awareness. In 2016, the Group’s overall accident rates (-3%) and fatality rates (-5%) have improved. We must highlight the example from France, where the number of fatalities has dropped by 20% during the fiscal year. Brazil and Puerto Rico showed decreases of 6% and 64% respectively. 12 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 New technologies and innovation also open the way to a new field for improving safety and mobility. Our Road Tech program understands that the future requires a combination of advances in infrastructures and technology. Abertis wishes to contribute to this by being part of the solution to the mobility challenges of the 21st century, such as traffic congestion and pollution. As the global leader in the toll road management industry, it is our responsibility to prepare ourselves for the future. And, we will continue our work in order to deliver this commitment too. Thank you for trust in Abertis. Francisco Reynés Massanet Vice-Chairman and Chief Executive Officer 13 2 . C a r t a d e l V i c e p r e s i d e n t e - C o n s e j e r o D e l e g a d o Abertis at a glance 316 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Abertis at a glance Global leader We manage thousands of kilometers of high quality and high capacity roads around the world. 14 countries 8,650 kilometers More Than 15,000 collaborators 3 Good partner to administrations We have grown by being good partners to governments: we are committed to the long term, and we deliver a high quality product. Relance Plans I and II Metropistas + 10 years Long-term vision We know that when we manage a road, we are entrusted with a public good. That’s why we want to be a part of the solution to public problems associated with increasing road travel, such as congestion and climate change. We take a hundred year view of our business. 50-Years Experience Best Practices Excellence in managament 17 3 . A b e r t i s a t a g l a n c e Safe and innovative toll roads We are continually investing in technology and smart engineering to make sure our customers have a smooth experience using our roads: safe, comfortable, fast and convenient. Global Road Safety Campaigns Mobility Innovation Leader In Free-Flow Toll Systems Qualified Team Financial strength and industrial expertise We bring together financial capability and industrial expertise: we have the capacity for large-scale financing, and we have the know-how to manage infrastructure. As demands on public finances continue to grow, we are at the centre of one of today’s global challenges: sustainably funding infrastructure for the future. Solid Results Revenues +13% 2016 Ebitda +20% 2016 Investments Of More Than 2,600 Mn 2016 Value creation € As the global leader in our sector, we aim to set standards for the industry. Nobody is better placed than Abertis to set the pace on quality and innovation. That’s how we plan to build on our success, for the benefit of our employees, our customers and our partners. And that’s how we’ll deliver value to our shareholders and broader society +11% Dividends 2016 More Than 1,800 Mn Commitment With Society Responsibility And Transparency In Fiscal Contributions € A robust strategy 4.1 A business with great prospects 4.2 Industry trends and challenges 4.3 Strategy 4.4 Global footprint 4.5 Abertis in 2016 4.6 2016 Milestones 4.7 Awards and Recognitions 420 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 A business with great prospects Basis for value creation reference company Be the pace on quality and innovation. long-term commitment high quality in the industry. Nobody is better placed than Abertis to set the Abertis is the global leader in toll road management with over 8,600 kilometers managed across 14 countries in Europe, America and Asia. Near 4.1 8,000 kilometers of direct management vision Stakes 650 kilometers Leading operator in Spain, Brazil and Chile Abertis’ and communications. mission is to become the leading global infrastructure management at the service of mobility Our is to promote and manage in a sustainable and efficient manner, while contributing to the development of infrastructures for society in full harmony with the well being of our employees and the creation of long-term value for our shareholders. values At Abertis we act with integrity and are guided by our : Managing our company and operations from the perspective of responsibility and trust on the people. Seeking out solutions for the development of infrastructures based on dialogue and collaboration with our stakeholders. Anticipating and adapting to the needs of our clients and users through innovation and continuous improvement. Driving efficiency across our organization based on simplicity and pragmatism. Being transparent in order to put in value our rigor and credibility. Our the Administrations. Continuous investment and services, which make us a great partner for in technology and smart engineering , which allows us to maintain toll road networks at maximum levels of service day after day in order to guarantee clients a fast, comfortable, easy and safe journey. financial strength and industrial experience By combining capacity in world markets and have the best know-how in the industry. part of the solution : we have strong financing By being as congestion and climate change. to problems associated with the increase of world traffic, such Portfolio backlog The success of Abertis’ business model is based on maintaining a proper balance between its more mature concessions and those with longer concession maturity dates. The Group works permanently to extend the average life of its portfolio, either through new acquisitions or through agreements for new investments in exchange for more years of concession. The agreements reached with public administrations and the constant investment in its asset portfolio have allowed the company to increase the proportional equivalent average life of its concessions by 9 years up to an average of 22 years between 2011 and 2017. 21 4 1 . A b u s i n e s s w i t h g r e a t p r o s p e c t s 22 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Keys to our industrial model Engineering A team of engineers constantly dedicated to maintaining maximum levels of service, quality and technology in our toll roads; guaranteeing an optimized maintenance thereof in order to contribute to extending their lifecycle, while controlling construction risks in expansion and renovation projects so as to ensure compliance with planned schedules. Technology Abertis’ experts promote the use of innovative solutions that are geared at increasing efficiency, safety and quality of service. All of the above with the goal of ensuring an efficient and safe traffic management through diligent monitoring of traffic conditions, efficient control of traffic flows, etc., while providing continuous information to the client. Operations Abertis’ industrial team develops and deploys best practices and policies that are based on the Group’s broad experience and know-how. 23 4 1 . A b u s i n e s s w i t h g r e a t p r o s p e c t s Basic principles of our business model Our long-term commitment and high- quality services makes us a great partner for Administrations. The safety of our clients is our priority. Every day we invest in technology and engineering to guarantee our clients the best experience and a safe, comfortable and easy journey. As the global leader in our sector, we aim to set standards for the industry. Nobody is better placed than Abertis to set the pace on quality and innovation. We want to be part of the solution to problems associated with the increase of world traffic, such as congestion and climate change. 24 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Industry trends and challenges New technologies The toll road management industry offers several opportunities and poses a number of challenges of different nature that will mark the future possibilities of the business in the coming years. 4.2 Opportunities Generating financial resources There are multiple road transportation costs, including construction, maintenance, congestion and pollution. At a time when investment in infrastructure is indispensable as a driver for economic growth, the private sector can contribute to the necessary investments in infrastructure.The implementation of pay-per-use schemes in toll roads can be a way to transfer the risk of demand of infrastructure projects. Environmental and social concerns The increase in the global population and the trends that point to a concentration in cities – particularly in growing markets – is contributing to an increase in the number of vehicles, mobility and transportation. In this context of increasing world road traffic, toll roads can contribute to significantly reduce congestion. Furthermore, toll roads are safer and their use has potential positive impacts on the environment. Competitiveness development Toll systems contribute to the implementation of Intelligent Transportation Systems (ITS) and integrating technologies which, ultimately, will make road transportation more efficient, safer and more competitive. Challenges Evolution of the economic situation The uncertainty in the evolution of macroeconomic data and the collapse of prices of raw materials, along with other elements such as stalling investments and lower productivity increases, can contribute to discouraging consumption and road transportation. Increasing competition In recent years, a number of new international players have appeared in the market that have an interest in assets such as toll roads. These are fundamentally infrastructure investment funds and pension funds. The current scenario, which is marked by low interest rates, have led these funds to increasingly invest on infrastructure assets due to their attractive profitability. Regulations and legal security The majority of the Group’s businesses are in the form of concessions that are limited in time and based on agreements with Public Administrations, which carry an obligation to guarantee the concessional obligations and investment commitments. The legal security that protects bi-lateral contracts is a cornerstone of the industry. Adapting to society’s new expectations 25 4 2 . I n d u s t r y t r e n d s a n d c h a l l e n g e s There are a number of clear positive effects toll roads have on the competitiveness of the territories they cross, as they provide better conditions of transportation while improving accessibility. Toll roads clients and other stakeholders have new expectations that are related to services, customer care, new technologies, transparency and flexibility, among others. 26 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Strategy In France and already in 2017, an agreement was reached with the French government to invest 147 million euros in the Sanef toll road network. Other agreements along these lines are under negotiation in China, Argentina and Brazil, where discussions are taking place for investments of about 2,000 million euros. Growth Operations in 2016 27 4 3 . S t r a t e g y Abertis has a Strategic Plan for the 2015-2017 period that is based on four key objectives: growth, focus, the search for efficiencies and the increase in shareholder retribution. 4.3 2015-2017 Strategic Plan 1. Growth Abertis focuses on “brownfield” and “yellowfield” projects in trusted markets with solid legal frameworks. All projects are analyzed by applying strict financial discipline from the perspective of the industrial profile that characterizes the company. growth via acquisitions As regards to , in 2016 Abertis has continued to strengthen its international presence with the entry into two new countries for the Group: Italy and India in September 2016 and at the beginning of 2017 respectively. In September, the company closed the acquisition of 51.4% of Italian industrial group A4 Holding, whose main assets are A4 and A31 toll roads. The purchase amounted to a total of 594 million euros, of which 589 millions will be paid in 2023. In December, Abertis announced an agreement with the MSIIPL and SMIT funds, controlled by Macquarie and State Bank of India, for the acquisition of two of India’s main toll roads, NH-44 and NH-45, for a total of 128 million euros. organic growth Regarding to its current asset portfolio. , the company seeks to win new extensions to the concession periods of In 2016, Abertis agreed to a 10-year extension to the concession term of Puerto Rico’s Metropistas toll roads for near 100 million euros. Acquisitions Agreements with Governments Search for new partners Chile Puerto Rico Chile Consolidation of Autopista Central (from 50% to 100%) Italy 10-year extention to Metropistas concession France Entry of Abu Dhabi Investment Authority with a 20% stake in Abertis Chile Purchase of 51.4% of A4 Holding India Negotiation of agreement for Plan Relance II Agreement for the purchase of two toll roads The Group also seeks growth in its existing asset base through : operations that enhance control In January 2016, Abertis acquired the 50% stake held by Canadian fund Alberta Investment Management Corporation (AIMco) in Chile’s Autopista Central, for 948 million euros. Already in 2017, Abertis has increased its control stake in its French subsidiary Sanef up to 63.07% by acquiring the stake of Caisse des Dépots et Consignations (CDC) in Holding d’Infraestructures de Transport (HIT), which controls 100% of Sanef. Also in January of 2017, Abertis has reached an agreement to increase its control stake in A4 Holding, with the purchase of an additional stake of 8.53% for 47.5 million euros. After the acquisition, Abertis now controls near 60% of the A4 Holding. 28 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 2. Focus Strategic Programs From the onset of the first 2011 Strategic Plan, Abertis has intensified the focus of its business in the toll road sector with a view to consolidate its position as a market leader. 3. Efficiencies In 2015 Abertis launched a new efficiency plan for the three-year period until 2017, which focuses on the Group’s businesses in France, Brazil and Spain. It is estimated that the new efficiency plan will have generated up to 400 million euros in cumulative savings for the company until its conclusion in 2017. In 2016, the Ebitda margin has increased in the Group’s main markets: Spain (+190 bps), France (+170 bps), Brazil (+130 bps) and Chile (+40 bps). At the Group level, the Ebitda margin is set at 66% at the closing of 2016. 4. Shareholder remuneration As established in the 2015-2017 Strategic Plan, the dividend per share grew 5% in 2016, which, added to the bonus share issue in the fiscal year implies an increase of the shareholder’s annual remuneration of more than 10%. With the new shareholder remuneration policy, it is estimated that the company will distribute over 2,150 million euros between 2015-2017 only in ordinary dividends. Ordinary Acrrued Dividends (Mn€) Dividend per share (€) 723 +11% 651 0.73 0.69 As part of its will to combine a long-term business vision and a commitment to society, in 2016 Abertis designed two strategic programs that seek to respond to some of the main mobility challenges in the future such as congestion, pollution and road accidents. Road Safety The Road Safety program seeks to align all of the Group’s activities with the fight against road accidents, by leveraging the best practices acquired over more than 50 years of experience in road management with the highest standards of quality. In 2016, both the fatality rates and the accident rates have been reduced (-5% and -3% respectively) across the entire toll road network. Worth highlighting is the drop in the fatality rate in France (-22%). Road Tech The Road Tech program seeks to open a space for research and innovation in those new technologies that can offer solutions for improved traffic management and road infrastructure: technologies with the best outlook, barriers and facilitating elements that can accelerate their progress, and where Abertis may generate a greater impact as a company. 29 4 3 . S t r a t e g y 31 4 3 . S t r a t e g y 30 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 CSR Master Plan CSR Master Plan strategic guidelines and objectives The Corporate Social Responsibility (CSR) Policy, which was updated in 2015 and approved in 2016, and the materiality assessment constitute the basis for defining the CSR Master Plan. In 2016, 38 quantitative goals were developed and approved, linked to the plan, and their duration has been extended until 2020. The detailed follow-up of the specific quantitative goals of the CSR Master Plan and associated performance indicators have been developed in the annex that accompanies this report. The CRS Committee of the Board of Directors oversees the follow-up and development of the CSR Master Plan and counts on the Corporation’s CSR Unit as its coordinating core, and on the management units that are involved in all of the activities and countries as the operating parties. The CSR Master Plan consists of four guidelines and 13 strategic goals that are deployed into 38 quantitative common goals spanning the entire organization. Human Rights and the commitment with stakeholder groups are the transversal principles of the entire Plan. Sustainability indices and assessments In 2016 Abertis was included in the Dow Jones Sustainability Indices (World), the FTSE4Good ESG family of indices, STOXX and MSCI, and the “A List” of the Carbon Disclosure Project (in the field of climate change). Member 2016/2017 Good Governance, Transparency and Accountability Ecoefficiency Development of an organizational culture based on ethical principles Rejection of all forms of corruption Achieve excellence in good governance Reduction of the organization´s carbon footprint and that of its activities Development of products and services with positive environmental and social criterias Innovation based on circular economy criteria of the activity’s value chain Integration with the surroundings Safety and Quality Generation of positive synergies with the local community Enhance and preserve natural capital Guarantee and promote road safety Guarantee occupational health and safety Boost employment quality Guarantee equal opportunities Quality products and services that can generate positive ESG impacts 32 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Global footprint 14 COUNTRIES IN EUROPE, AMERICA AND ASIA 4.4 Bilbao León Logroño Girona Astorga Zaragoza Segovia Barcelona Tarragona Madrid Alicante Adanero Ávila Sevilla Cádiz 33 4 4 . l G o b a l f o o t p r i n t Spain Toll Roads in Spain Control Non-control : Acesa, Aucat, Invicat, Aumar, Iberpistas, Castellana, Avasa, Túnels : Autema, Accesos de Madrid, Henarsa, Ciralsa, Trados 45 14 1,559 70% 1,740 20,090 concessions kilometers (directly managed) + 218 kilometers (indirect) of the country’s total toll roads collaborators ADT vehicles (+5.3%) 34 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Reims Estrasburgo Caen París Alençon Lyon Langon Toll Roads in France Pau France Control Non-control : Sanef, Sapn, Emovis 4 : Alis, Aliénor, Leónord 1,761 More of 25% concessions kilometers (directly managed) + 278 (indirect) of the country’s total toll roads 2,572 24,473 collaborators ADT vehicles (+1.9%) 35 4 4 . l G o b a l f o o t p r i n t Franca Ribeirão Preto Belo Horizonte São Carlos Araras São Paulo Curitiba Rio de Janeiro Florianópolis Toll Roads in Brazil Brazil Control : Autovias, Centrovias, Intervias, Vianorte, Fernão Dias, Fluminense, Régis Bittencourt, Litoral Sul, Planalto Sul 9 3,250 17% 5,753 17,682 concessions kilometers of Brazil’s toll road market collaborators ADT vehicles (–2.8%) 36 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 La Serena Ovalle Quilota Los Andes Santiago de Chile Viña de Mar San Antonio Piovene Rocchette Brescia Pádua Badia Polesine 37 4 4 . l G o b a l f o o t p r i n t Toll Roads in Chile Toll Roads in Italy Chile Control Italy Control : Autopista Central, Elqui, Rutas del Pacífico, Autopista del Sol, Autopista Los Libertadores, : A4 Holding Autopista de los Andes 6 concessions 771 kilometers 1,661 collaborators 25,779 ADT vehicles (+6.4%) 2 concessions 236 kilometers 333 collaborators 62,612 ADT vehicles (+2.6%) 38 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Arecibo San Juan Barceloneta Vega Alta Toll Roads in Puerto Rico San Isidro Luján San Fernando Buenos Aires 39 4 4 . l G o b a l f o o t p r i n t Puerto Rico Argentina Toll Roads in Argentina Control 2 : Metropistas, Autopistas de Puerto Rico, Emovis 90 69 concessions kilometers collaborators 66,542 ADT vehicles (+0.9%) : Ausol, Grupo Concesionario del Oeste Control 2 concessions 175 kilometers 2,027 collaborators 84,222 ADT vehicles (+0.2%) 40 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Hyderabad Jadcherla Trichy Ulundurpet 41 4 4 . l G o b a l f o o t p r i n t Bogotá Villavicencio Toll Roads in India Toll Roads in Colombia India Colombia Control 2 : Trichy Tollway Private Limited, Jadcherla Expressways Private Limited* 152 50 20,818 concessions kilometers collaborators (2017 forecast) ADT vehicles (2017 forecast) Transaction closed in 2017. Non-control 86 : Coviandes | Autopista Bogotá-Villavicencio 272 kilometers collaborators (100% Coviandes) 42 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Dublín Toll Roads in Ireland Ireland Control : Emovis M-50 (Dublin) – Free-flow operations 120,000 vehicles/day 86 collaborators 43 4 4 . l G o b a l f o o t p r i n t Peterborough Liverpool Gloucester Alconbury Londres Swindon Toll Roads in United Kingdom United Kingdom Control : Emovis Non-control Dartford Crossing- Free-flow operations | Mersey Gateway (Liverpool)- Free-flow operations (2017) : RMG A1-M Alconbury-Peterborough | A419/417 Swindon-Gloucester 150,000 74 vehicles/day Dartford Crossing kilometers 287 collaborators (Emovis) 44 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Nueva York 45 4 4 . l G o b a l f o o t p r i n t United States Control : Emovis Research and Development Center (New York) 43 collaborators Vancouver Montreal Canada Control : Emovis Golden Ears Bridge, Port Mann Bridge- Free-flow operations 5 collaborators 46 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Split Croatia Control : Emovis Research and Development Center 38 collaborators 47 4 4 . l G o b a l f o o t p r i n t Emovis 8 countries Presence in : US, Canada, Puerto Rico, Chile, United Kingdom, Ireland, Croatia, France. More than 552 collaborators 6 3 4.2 million 300 million free-flow projects technological centers electronic toll collection accounts transactions a year Telecommunications Hispasat 57% 188 8 89% stake collaborators satelites* occupation Cellnex 34% stake * A new satellite was launched in January of 2017. 48 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Abertis in 2016 International leader Kilometers (indirectly managed) 655 4.5 Kilometers (directly managed) km Concessions 41 7,842 km Financial strength Revenue 4,936 Mn +13% € Market cap 13,200 Mn Corporate Rating € Discretionary Cash Flow 2,214 Mn +15% like-for-like € Ebitda 3,240 Mn +20% € Accrued Dividends 723 Mn € Kilometers travelled million Net Profit 796 Mn +13% like-for-like € Dividend Yield +6% Total Investment 2,602 Mn € Safe and innovative infrastructures Light vehicles ADT 19,090 ADT 23,877 +1,3% vehicles Electronic toll collection transactions 60% +2 p.p Value creation for society 49 4 5 . A b e r t i s i n 2 0 1 6 Heavy vehicles ADT 4,788 Fatality rate 1.2 -5% Accident rate 20.5 -3% Fiscal contribution 1,825 Mn € Community 284 initiatives developed Average workforce 15,077 people Community CO2 emissions/ 3,910 Mn Tn revenue Local suppliers purchases 98% ESG Rating -5% € Environmental Expenses Work-related accidents -18% Occupational Health & Safety Training 146,679 hours +9.5% 22 Mn +15% € (score 72/100) (score 4.1/5) 50 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 2016 Milestones January 4.6 March April May June July 100% of Autopista Central Abertis acquires the 50% it didn’t already own of Autopista Central for 948 million euros. Brazil enters the Academic Chair network Creation of the Abertis-USP Chair of Transportation Infrastructure Management. Extension of the concession in Puerto Rico Metropistas and the Government of the island sign an agreement for a 10-year extension of PR-22 and PR-5 concession. Bond issue of 1,150Mn. The largest corporate bond issue in the history of Abertis. Arteris takeover bid closed € Arteris no longer listed in the Brazilian stock exchange. Capital increase Abertis begins bonus share issue of 141 million euros. New female Board Members The Board of Directors appoints Sandrine Lagumina and Marina Serrano as new independent board members. Together for Safer Roads Abertis joins the largest global road safety coalition, alongside leading companies in their respective industries. 51 4 6 . 2 0 1 6 M i l e s t o n e s August September October November December Arteris sells its stake in STP The Brazilian company sells its 4.68% stake in Serviços e Tecnologia de Pagamentos (STP) for approximately 60 million euros. Entry into Italy Abertis closes the purchase of 51.4% of A4 Holding (toll roads A4 and A31), for a total of 594 million euros. Dow Jones Sustainability World Abertis renews its presence as the only Spanish company of its industry. Agreement with ADIA Abertis welcomes Abu Dhabi Investment Authority to its business in Chile with a 20% stake. Sanef 300Mn bond issue € The coupon at 0.95% is one of the lowest in the last years for bond issues from companies with the same rating. Carbon Disclosure Project Abertis receives maximum recognition from CDP for its strategy and actions in response to climate change. Enrico Letta and Luis Fortuño, new Board Members After their appointment, the Board of Directors has a majority of independent members. Abertis refinances debt The company issues 10+ year bonds for 500 million euros at 1% and issues a repurchase offer for existing higher-cost bonds. Autopista del Sol repurchases bonds Abertis closes offer to voluntarily repurchase bonds for 38 million euros. Abertis enters Asia The Group reaches an agreement for the acquisition of two toll roads in India. FTSE4Good Abertis included in the index family for the first time. 52 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Awards and Recognitions 4.7 2016 Tiepolo Award from the Italian Chamber of Commerce in Spain and the Spanish Confederation of Business Associations (CEOE). Road Safety Award from the State of São Paulo Board of Transportation (ARTESP) to Vianorte (Brazil). Award to the Autopistas en Ruta application (Autopistas) for Best road safety technological proposal, by the Association of New Technologies in Transportation (ITS Spain) ISO9001:2008 quality certificate for Emovis (United Kingdom). First Innovation Prize granted by ARTESP to Autovías for its implementation flexible road control system with steel cable (Brazil). 53 4 7 . A w a r d s a n d R e c o g n i t i o n s st 1 position in the “Most Innovative Companies Chile 2016” ranking in the Large Company Concessions sector awarded to Autopista Central from Universidad de los Andes ESE Business School (Chile). 2016 Eikon Silver Award for Ausol in the Consumer Relations category for the project “New bridges and expansion of Av. General Paz” (Argentina). First Prize - Prêmio de Educação no Trânsito de Denatran (Departamento Nacional de Trânsito) for the Projeto Escola (Brazil). SIPP Award – UN Global Compact, in the Human Rights category for the Red Viva Social Responsibility Program (Chile). Honorable Mention for the “Lab City” project developed by Autopista Central at COPSA’s 6 National Concessions Congress (Chile). Bronze medal in the Business Transformation category of the Spain and Portugal SAP Quality Awards to Autopistas (Spain). Stela Award (Down Madrid) and Catalunya Down Syndrome Foundation Award for its social initiatives, to the Abertis Foundation. th Sanef renews its ECOCERT «Engagement Biodiversité» certification. Responsible Corporate Governance 5.1 Adaptation to the Code of Good Governance 5.2 Corporate Governance Structure 5.3 Management Team 556 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Adaptation to the Code of Good Governance 5.1 15 To Abertis, good Corporate Governance is an essential factor for sustainability and long-term growth. Abertis is the Ibex 35 Spanish company with the highest percentage of women’s representation in its Board of Directors (40%). 6 8 52 members women Independent members recommendations satisfied Strategic objectives Achieve excellence in Good Governance. Foster Corporate Social Responsibility and good Corporate Governance practices. For more information on the degree of follow-up of the recommendations on Good Governance please consult Abertis’ Annual Corporate Governance Report (CGAR). Good Governance Best Practices Pursuant to its commitment toward transparency, Abertis complies with Good Governance regulations applicable to listed companies as well as with the majority of the recommendations of the Good Governance Code. In 2016, Abertis has restructured and simplified its governance bodies. The Board of Directors approved in 2016 the appointments of Sandrine Lagumina, Marina Serrano, Luis Fortuño and Enrico Letta as new independent directors of the Board. These appointments increase both the presence of women and the internationalization of the Members of the Board, while enhancing the role of independent Board members in the company’s Governance bodies. As of December 31st 2016, Abertis’ Board of Directors has 8 independent directors, representing over half of the Board’s composition and which is therefore in alignment with Corporate Governance best practices. As regards the remaining Committees – Audit and Control Committee, Appointments and Remuneration Committee and Corporate Social Responsibility Committee – the adaption to international Good Governance best practices has resulted in the number of independent board members being greater than the number of proprietary directors in all of them, with the presidency remaining also in the hands of the former. Thus, all of the presidents of the Commissions of the Board (Audit and Control, Appointments and Retributions and Corporate Social Responsibility) are part of the Executive Committee. Of the 64 recommendations (58 of which apply), Abertis complies with 52 of them in full and partially with 1. Furthermore, the President notifies about compliance with the recommendations at each General Shareholders Meetings, and provides justification in the case of those recommendations that are not followed. 58 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Corporate Governance Structure* Board of Directors Salvador Alemany Mas Chairman 5.2 Executive Committee Board of Directors Audit and Control Committee Appointments and Remuneration Committee Corporate Social Responsibility Committee The functioning of the Group’s management bodies is described in detail in the CGAR, which highlights the functions of the Board of Directors as the top governance body at the company. Carmen Godia Bull Marcelino Armenter Vidal Juan-José López Burniol Susana Gallardo Torrededia Juan-Miguel Villar Mir Miquel Roca Junyent Secretary, non-board member Josep Maria Coronas Guinart Vice-Secretary, non-board member 59 5 2 . C o r p o r a t e G o v e r n a n c e S t r u c t u r e Enrico Letta María Teresa Costa Campi Sandrine Lagumina Carlos Colomer Casellas Luis Guillermo Fortuño Mónica López-Monís Gallego Marina Serrano González Miguel Ángel Gutiérrez Méndez * As of December 31st, 2016. As of January 31st, 2017 Juan-Miguel Villar Mir (proprietary board member) and Miguel Ángel Gutiérrez Méndez (independent board member) have resigned. On February 28, 2017 and March 9, 2017, these vacancies have been filled by two independent members, which means on the date of issuance of this report the number of independent members had increased to 9. Francisco Reynés Massanet Vice-Chairman & Chief Executive Officer Proprietary Independent Executive 60 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Board Committees EXECUTIVE COMMITTEE Salvador Alemany Mas Chairman: Marcelino Armenter Vidal Members: Carlos Colomer Casellas María Teresa Costa Campi Mónica López-Monís Gallego Francisco Reynés Massanet Juan-Miguel Villar Mir Miquel Roca Junyent Secretary, non-Board Member: Josep Maria Coronas Guinart Vice Secretary, non-Board Member: APPOINTMENTS AND REMUNERATION COMMITTEE Mónica López-Monís Gallego Chairman: María Teresa Costa Campi Members: Miguel Ángel Gutiérrez Méndez Juan-José López Burniol Marina Serrano González Josep Maria Coronas Guinart Secretary, non-Board member: AUDIT AND CONTROL COMMITTEE CORPORATE SOCIAL RESPONSIBILITY COMMITTEE Carlos Colomer Casellas Chairman: Marcelino Armenter Vidal Members: María Teresa Costa Campi Susana Gallardo Torrededia Miguel Ángel Gutiérrez Méndez María Teresa Costa Campi Chairman: Carlos Colomer Casellas Members: Susana Gallardo Torrededia Carmen Godia Bull Sandrine Lagumina Marta Casas Caba Secretary, non-Board Member: Josep Maria Coronas Guinart Non-Board Member: Management Team* Vice-Chairman – Chief Executive Officer 5.3 General Secretary and Corporate Affairs Managing Director Chief Financial and Corporate Development Officer Chief Industrial Development Officer Human Resources Director AUTOPISTAS SPAIN Deputy Managing Director of Autopistas** SANEF FRANCE Managing Director of Sanef ARTERIS BRASIL Chief Executive Officer of Arteris TOLL ROADS CHILE Managing Director of Toll roads Chile TOLL ROADS INTERNATIONAL Managing Director of Toll Roads International and Executive President of A4 Holding HISPASAT Chief Executive Officer Hispasat * As of December 31st, 2016 ** Anna Bonet is Managing Director of Autopistas since January 1st, 2017. 61 5 2 . C o r p o r a t e G o v e r n a n c e S t r u c t u r e | 5 3 . M a n a g e m e n t T e a m Francisco Reynés Massanet Josep Maria Coronas Guinart José Aljaro Navarro Josep Lluís Giménez Sevilla Joan Rafel Herrero Anna Bonet Olivart Lluís Deulofeu Fuguet David Díaz Almazán Luis Miguel de Pablo Ruiz Carlos del Río Carcaño Carlos Espinós Gómez Compliance and effective risk management 6.1 Ethics and integrity 6.2 Risk control 664 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Ethics and integrity The Abertis Group is fully commmited to exercising its activities with honesty, integrity and compliance to the law, be it in its relationship with its employees or with its stakeholders. 6.1 78% of reports related to the Code of Ethics resolved in 2016 Strategic objectives Develop an organizational culture based on ethical principles. Reject all forms of corruption. Compliance System Abertis has a Code of Ethics that constitutes the fundamental norm of the Abertis Group and whose principles are deployed in the form of an internal regulation. This Ethics Code captures the principles and values that must guide the behavior of the employees of the Abertis Group, as well as its suppliers, clients, distributors, external professionals and representatives of public administrations. In 2016, 238 reports were received. As an ethical, socially responsible and environmentally friendly organization, the Abertis Group gives greatest importance to the fair treatment of employees, clients and suppliers, authorities, investors and the general public. Likewise, the Abertis Group formally condemns any form of corruption and reaffirms its firm commitment to complying with the law. The Abertis Group does not tolerate any act that is contrary to its Code of Ethics, which would automatically result in sanctions for the perpetrator as well as for stakeholders linked to the different companies of the Abertis Group. All management units of the Abertis Group will monitor the actual and effective application of the principles that are established in the Code of Ethics. The Group also has the following applicable rules: Abertis Group Ethics Committee and Criminal Prevention Rules, Abertis Group Corruption Prevention Rules, Abertis Advocacy Lobby Rules, Compliance Policy, Code of Ethics Rules in Spain, Local Code of Ethics of companies of the Abertis Group, among others. The Group’s Ethics and Criminal Prevention Rules, approved by the Board of Directors on February 9, 2016, is the fundamental and functional rule that has enabled the deployment of the Code of Ethics. This rule establishes the functions and guiding principles of each one of the Group’s Ethics and Criminal Prevention Commitees. In addition to monitoring compliance with the Code of Ethics, among the functions attributed to the Corporate Ethics and Criminal Prevention Committee is the function to supervise and control compliance with the functions that are attributed to the rest of the Group’s Ethics and Criminal Prevention Commitees. Within this oversight and control function, the Corporate Ethics and Criminal Prevention Committee has been able to determine that the deployment of Abertis’ Code of Ethics and the Group Ethics and Criminal Prevention Commitee Group Rules has been practically uniform across all business units, save the difficulties deriving from the different local applicable legislations, uses, traditions or influences from other partners. The ethics channel, the Code of Ethics and the Compliance Rules can be consulted on Abertis’ website (www.abertis.com). Likewise, the Corporate Compliance function has set up an electronic mailbox where Group employees can also raise inquiries in relation to compliance with the law and internal rules. 66 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 2016 Developments Compliance Management Structure Approval of the Advocacy Lobby rule. Applicable to administrators, employees and lobbying service suppliers to the Corporation, the rule establishes the procedure to be followed when exercising the lobby, and provides details of the control measures to be applied to these activities. Preparation of reporting procedures and methodologies of the different spheres under control of Abertis’ Compliance Management Unit. Advances in the preparation of inherent criminal risk maps and the standardization of the message of a culture of Compliance for all of its employees, applicable to the entire Group. Training for all employees of the Corporation in matters pertaining to corruption prevention, ethics, Compliance and workplace bullying (in-person and on-line). Resolution of reports received in 2016 3% 7% 84% 6% Reports rejected Reports closed with warnings Reports closed with disciplinary measures Reports closed with dismissal The Corporate Ethics and Criminal Prevention Committee, chaired by Abertis’ Chief Compliance Officer, is the party responsible for supervising its operations and the crime prevention model. The Compliance Management Unit is responsible for the design, implementation and oversight of the regulatory compliance management system, and ensures that all activities that are being undertaken or that are to be undertaken comply with the legal requirements that apply to the Group’s companies, while also implementing rules, procedures and suitable and effective controls geared at ensuring compliance therewith. Compliance Management Model Board of Directors Audit and Control Committee Corporate Ethics and Criminal Prevention Commitee Chief Compliance Officer Local Ethics and Criminal Prevention Commitee Local Compliance Officers 67 . 6 1 E t h i c s a n d i n t e g r i t y 69 . 6 2 R i s k c o n t r o l 68 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Risk control Risk type Main risks Control measures 6.2 The Abertis Group is exposed to different inherent risks in the different countries in which it operates. For this purpose, the Group has implemented a risk management model, which is approved and monitored by the Audit and Control Committee and which applies to all business units and corporate units in all countries where the company conducts its activities. Main risks and internal control Risk type Main risks Control measures Context and regulatory risks and risks deriving from the specific nature of the Group’s business Decrease in demand due to the economic situa- tion of some countries Internationalization and selecti- ve growth policy Creation of alternative infrastructures Understanding with Public Administrations Risks deriving from the integration of acquired businesses Efficiency plans Mobility changes Entry of new competitors in some sectors of activity Coordination for ensuring adequate compliance with the existing local legislation and anti- cipation to regulatory updates Regulatory changes and socio-political changes Insurance coverage Catastrophic risks Financial risks Industrial risks Foreign exchange risk Liquidity risk Cash flow interest rate risk Debt refinancing risk and credit rating variations Follow-up on the interest and foreign exchange rate management policy Monitoring and extension of debt maturity and monitoring of potential impacts on credit rating Client and employee safety Adaptation risks and rapid response to technological changes in operational systems and the onset of new technologies Control risks in construction projects Risks associated with the correct maintenance and quality of infrastructures Training and talent retention risks Supplier dependency Business disruption Environmental risks Specific policies, procedures, plans and control systems for each area Investment program follow-up and control Implementation of systems geared at improving control thereof. Risk follow-up and analysis and implementation of a Corporate insurance program Environmental management system Financial information risk, fraud and compliance Financial and operational integrity and security Internal and external fraud Legal compliance and internal and contractual compliance Internal Financial Information Control System (IFICS) organizational and supervision model Compliance function implemented at the Group 70 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Comprehensive risk control The members of the company’s Administration bodies commit to ensuring that all company-relevant risks are duly identified, appraised and prioritized and to establish the mechanisms and basic principles required to achieve a level of risk that allows a sustainable growth of our share value and shareholder retribution, protect the Group’s reputation and promote good Corporate Governance practices and provide quality service in all infrastructures operated by the Group. In 2016, the main materialized risks are those related to the continuing restrictions in availability and the terms of public and private financing in some countries (mitigated by strict financial discipline), the adverse economic situation of some countries that negatively affect the evolution of traffic (mitigated by the Group’s geographical diversification), damages resulting from adverse climatic conditions (mitigated by a corporate insurance coverage policy) and the differing interpretations of certain contractual agreements that can lead to negotiation proceedings and eventually to situations that involve claims. 71 . 6 2 R i s k c o n t r o l The Risk Control and Management Policy establishes a comprehenive risk control system that includes: Abertis risk control and management model A methodology for measuring and following up on risks, which is common to the entire Group. The identification, appraisal and prioritization by each Business Unit and by the Corporation’s Unit of all inherent and residual risks, control activities and defined action plans and the individuals responsible for them. The preparation and continuous updating of Business Unit risk maps, according to the Group’s methodology, which must be periodically cross checked and approved by Business Unit General Managers and the Corporation’s Area Directors. The preparation and supervision of risk reports, both external (shareholders, investors and regulatory bodies) and internal, the purpose of which is to ensure that all risks have been adequately identified, prioritized and managed, according to the established guidelines and limits. The selection of risks for their follow-up, in two levels: 1. Risks requiring priority follow-up (“key topics”) that are considered to be highly critical, given the impact that their possible materialization would have on the established objectives, which would require quarterly follow-up with stronger informational requirements. 2. Rest of risks identified on maps, including responsible individuals, scope and indicators for supervising the control activities and action plans, with a semi-annual follow-up. Board, Audit & Control Committee, Management Board Risk Control Corporate Define value levers Define key topics (main risks) Define initiatives for each key topic Methodology, Homogenization, Coordination Abertis consolidated risk map Coordination Monitoring and follow-up Business Units Risk identificacion and appraisal Business Unit risk maps Develop initiatives and control systematic Identify and appraise Prioritize Control Monitor Safe and innovative infrastructures 7.1 Safety: our priority 7.2 Intelligent technology and engineering 7.3 Continous investment 7.4 Efficient toll roads 7.5 Client focus 774 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Safety: our priority Road Safety Program Optimum maintenance is key to safe roads. As a result, the Abertis Group observes policies and procedures that are well established across the entire industry in order to ensure that road planning, design, construction and maintenance have safety as a priority. -5.4% Fatality rate 10 awareness projects 7.1 -2.6% Accident rate Strategic objective Guarantee and promote road safety. As part of Abertis Group’s strategic programs, the Road Safety program focuses particularly on improving road safety. As a result of the application of this strategy, 2016 saw a continuous improvement of the Group’s accident and fatality rates. During the fiscal year, the accident frequency rate (IF1) dropped to 20.5 (-2.6%), with outstanding improvements in Chile, Puerto Rico and Argentina. In turn, the fatality frequency rate (IF3) dropped to 1.21 (-5.4%) thanks to the downward trend in France, Brazil and Puerto Rico. Operations-wise, Abertis’ know-how guarantees high levels of safety for road clients by means of patrols, traffic control, incident management protocols and information that is provided to drivers. In 2016, Autopistas (Spain), Autopista Central (Chile) and GCO (Argentina) have implemented a road safety management system based on the ISO 39001 standard, with the two former ones having obtained the corresponding certificate. ACCIDENT PREVENTION INITIATIVES Application of best construction practices In Brazil’s concession holder Planalto Sul, the expansion and improvement of the design of toll road BR-116 in Paraná has led to improved traffic flow and the elimination of frontal collisions, which result in high number of fatalites. The number of accidents in the new road section has dropped by 93%. In France, the expansion of the emergency lane of the toll road A29 between junctions A29/ A1 and A29/A26 along a 31-kilometer stretch, as part of the Plan Relance, which is expected to be completed in the summer of 2017. The new lane is expected to improve the safety conditions of all users. * FR = Number of accidents with victims / Traffic in 108 veh x Km ** Number of fatalities / Traffic in 108 veh x Km 75 . 7 1 S a f e t y : o u r p r i o r i t y 76 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Development of infraestructure asset management tools to track the condition of road surfaces, structures and retaining walls; and to manage maintenance needs. Knowing the client Regular safety inspections. In Chile, we work with iRAP to independently audit our roads. The results of the audit have granted 4 stars (out of 5) to 41% of the Autopista Central’s stretch and 3 stars to another 58%. Continuous training for on-road workers. In Spain more than ten drills (accidents in tunnels, winter road conditions, etc.) have been conducted in collaboration with public administrations and security and emergency forces, in order to keep all collaborators permanently trained at all times to ensure the best response possible. In Brazil, a new toll road signaling manual has been created that brings together critical tasks with the purpose of creating a safety philosophy among the workforce. In France, a new edition of the safety campaign has been developed for on-road workers. POST-ACCIDENT RESPONSE Recent innovations include advanced intelligent transport systems (surveillance camera and traffic sensors) and an application that automatically detects irregular traffic situations in tunnels. In Spain the “Autopistas en Ruta” mobile application includes an emergency call function based on the European number 112 and which is similar to the eCall system proposed by the European Union, which will become mandatory in European vehicles starting in 2018. France’s Road Traffic Observatory in collaboration with the Administration allows understanding driver behavior better, with the purpose of adapting and improving the communication campaigns. In Spain, Abertis together with the General Traffic Directorate has prepared a road safety study among young persons of 16 to 22 years of age, with the purpose of gathering their opinion about the different aspects of mobility and road safety. In Brazil, a study was undertaken in collaboration with several universities to understand the impact on users of signalization along a stretch of the Serra do Cafezal road. After the analysis of the results, corrective measures were taken to improve signaling and safety in the aforementioned road section. Lab City Project (Chile) Abertis’ subsidiary in Chile is conducting a program aimed at enhancing road safety thanks to improved information to the client through new technologies: - Totem poles: LED panels that enable drivers on the road to obtain real-time information about traffic conditions and thus help them to decide on the spot which road to take. - Laser signalling: Laser equipment installed on tunnel walls that project information on the ceiling, avoiding clearance problems and eliminating the probability of accidents with large volume vehicles. - Suggested speed panels: variable messaging system based on LED technology that indicates a suggested speed as a function of traffic conditions. This method helps prevent abrupt reductions in speed, improves circulation as a result of decreased congestion and accordion effects and helps maintain a constant traffic speed. 77 . 7 1 S a f e t y : o u r p r i o r i t y 78 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Collaboration with social agents Awareness initiatives in 2016 In 2016, the Group joined the global coalition Together for Safer Roads, which brings together leading private companies across the entire industry that share the same agenda – in matters related to road safety – with the UN’s goal of stabilizing and subsequently reducing future occurrences of traffic- related fatalities across the globe. The International network of Abertis Chair has created this year a research award focusing on road safety, to be granted among the best projects presented in the five academic chairs across its international network, which includes Spain, France, Chile, Brazil and Puerto Rico. In France, an agreement has been reached with the Ministry to promote innovative campaigns such as the one conducted in recent months that gave drivers the opportunity to choose between penalties or enrolling in responsible driving awareness courses. In Brazil, Arteris is one of the main partners of a road safety pilot initiative in São Paulo by Together For Safer Roads, that brings together organizations from several sectors and the Government to address road safety in the entire city. In the interim, Arteris leads the fight for road safety through multiple initiatives such as the Road Safety Forum, which, in its third year, has consolidated its position as a renowned and prestigious forum in this field. In Puerto Rico, Metropistas works alongside the Transit Safety Commission (CST) to develop an educational program addressed to children covering the roles of drivers, cyclists and pedestrians. A campaign was also successfully launched with the Compulsory Insurance Association (ASC) in the country, addressed to 12 to 15 year old youngsters. In Spain, Autopistas has launched the creation of the Road Safety Bureau, with the goal of promoting a culture of road safety inside and outside of the company and provide guidance on safe and effective infrastructure management through the study and analysis of accidentability and awareness about the importance of road safety to all collaborators. In 2017, the first planned actions will be implemented, which are geared at changing the habits and customs of drivers and workers, in collaboration with institutions and official bodies such as the Dirección General de Tráfico or the Servei Català del Trànsit. Addressed to infants Addressed to the young KanGo (Spain) Cooperante Vial (Spain) Festa dels Súpers (Spain) Projeto Escola (Brazil) Proyecto Escuela (Chile) Projeto Escola Te queda una vida (Spain, Chile) Autoroute Académie (France) Foro Mundial de la Juventud (Brazil) Seis Segundos (Puerto Rico) “Wikén Sin Choques” (Puerto Rico) This year, Arteris’ “Projeto Escola” celebrates 15 years working in the humanization of traffic through citizen participation, ethics and social coexistence. The program involves schools, teachers and students in multiple activities that revolve around road safety and mobility. In figures: 545 schools 132 towns 15,000 teachers trained 269,000 students 79 . 7 1 S a f e t y : o u r p r i o r i t y 80 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Intelligent technology and engineering Electric vehicles Abertis works to ensure that the purpose of all technological innovations is to improve the safety of clients using the Group’s infrastructures, in addition to managing the networks in a more efficient and modern way. 7.2 Strategic objective Innovate and incorporate the best technological practices. Road Tech In 2016 Abertis presented a program that focused on research and innovation, with the goal of fully understanding Road Tech’s ecosystem today: the technologies with the greatest outlook, barriers and facilitators available for accelerating progress and where Abertis can have a greater impact as a company. The company has began conversations with the main pioneers at Road Tech that have a similar vision in relation to the future of mobility, with the goal of generating new knowledge and stimulating innovation in the industry. Abertis is currently working to introduce innovations geared at facilitating the rapid growth of electric vehicles in roads: Corri-door Project . In collaboration with Renault and the EDF Group, Sanef (France) is currently introducing 33 electrical vehicle recharge stations along its toll road network. Fabric dynamic charging project . Sanef, together with 22 partners, is currently assessing the viability and development of wireless charging devices in roads for electrical vehicles. The technological developments required for the pavement as well as the operational restrictions that may exist once implemented are currently under analysis. Connected roads Work is also under way to improve the manner in which information that is generated and shared by users in roads is managed, in view of optimizing mobility and transforming the client’s experience: SCOOP@F Project (France) : through the so-called Cooperative Intelligent Transport Systems or C-ITS, 3,000 and 2,000 km of roads have already been equipped in order to exchange information of traffic conditions. This will optimize mobility and transform the client’s experience, ultimately making roads safer. Mobile coverage (France) : Sanef is working with telecommunications companies to guarantee maximum data coverage in all its toll roads. Only through excellent coverage will it be possible to develop connected cars. Automatic passenger detection in high-occupancy cars (France) for an image analysis technology by NEC to move forward in the automation of high-occupancy lanes. : Research is under way 81 7 2 . I n t e l l i g e n t l t e c h n o o g y a n d e n g i n e e r i n g Collaboration with Waze Sanef and mobile mobility application Waze have signed an agreement in 2016 for the exchange of traffic data. This service allows users to be alerted of traffic congestions or accidents and choose alternative routes. Satellite sector In 2016 Hispasat has focused on several innovation processes, among which some stand out: A change in the business model, by shifting from the traditional focus on long-term contracts toward more services contracts and partnerships with other companies; innovation in product and services, by offering advice and technological solutions beyond satellite capacity; and innovations in satellite technology in view of optimizing in-service assets. 83 7 2 . I n t e l l i g e n t l t e c h n o o g y a n d e n g i n e e r i n g © 2014 ESA - CNES - ARIANESPACE / Photo Optique Video CSG. 84 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Continous investment 7.3 €1,020 Mn invested in organic growth in 2016 Constant improvement of infrastructures implies continuous investment work that not only enables to guarantee road safety, traffic flow, service and road sustainability, but also represents a boost to economic activity and the competitiveness of businesses in the area. €92 Mn in operating investments in 2016 €7,425 investment in maintenance per km/lane Since 2003 €8,713 Mn invested (operations and organic growth) 2016 landmark projects Arteris’ investment plans Brazil has been the country where more investments for expansion and operations have been made, with almost 2,000 million reais (about 600 million euros). Arteris continues to be immersed in an ambitious road modernization and expansion project that will entail an investment of 2,000 million euros until 2021. Among the most outstanding projects of the year, we must highlight the expansion to the Régis Bittencourt toll road, in its Serra do Cafezal section, an important project that is entering its final stage. Seventeen new kilometers of toll road are already operational. Intense work is also under way to expand the BR-101/RJ Norte toll road, which is managed by Autopista Fluminense. The construction project entails doubling 176 kilometers of toll road. In the meantime, construction work continues in the Contorno de Florianópolis, a project that is crucial to the capital of the state of Santa Catarina. Relance Plan 85 . 7 3 C o n t i n o u s i n v e s t m e n t In 2016, Sanef began several projects that are part of the Relance Plan, the investment plan that has been agreed with the French Government in 2015 and which has begun to bear fruit. During the fiscal year, different improvements have been completed in toll roads A-14 and A-13 of the Sapn network. Among those of greater significance, the improvement works of the road section in the Maison-Brulée zone of toll road A13 and the new exit ramp in the direction of Paris-Caen stand out. The works have resulted in improved safety and traffic flow in a section of the toll road that carries 20,000 drivers. The works that have taken place between the end of 2015 and the fall of 2016 have required an investment of approximately 5 million euros. Moreover, other construction works on the A13 (Criquebeuf, Carril de Lisieux) and A14 toll roads have been finalized, with other work moving ahead for the construction of new parking places for high-occupancy vehicles. Hispasat Abertis’ satellite division closed the 2016 fiscal year with significant investments destined to the construction of three new satellites: Hispasat 36W-1, Amazonas 5 and Hispasat 30W-6. In January 2017, Hispasat successfully launched the Hispasat 36W-1 into orbit, the Group’s most innovative satellite built on the SmallGEO platform. Its design allows for substantial reductions in satellite mass thanks to the use of electrical propulsion during its useful life, which has translated into savings in launch costs while meeting the most demanding requisites of telecommunication services. This satellite adds to the current fleet of 7 satellites. Set at an orbital position of 36º west, it provides the fleet with new optimized coverage in South America, Europe and the Canary Islands. 86 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Key operational investments and organic expansion projects in 2016 Brazil Doubling of 3 km of SP 318 (Autovías) Itirapina road works (Centrovías) Expansion of approximately 20 km of SP 147 (Vianorte) Expansion of Serra do Cafezal (Régis Bittencourt) Expansion of approximately 20 km of BR-116 (Planalto Sul) Florianópolis ring road (Litoral Sul) Puerto Rico Agreement for the extension of the Metropistas concession and advances in the innovation and new technologies plan Spain France Construction of new access routes in Sitges and Mataró Relance Plan: works for the construction of a new access road for A13 toll road toward Maison-Brulée Chile Progress in the construction of a new 22-km section of the Los Andes toll road Works on Maipo Bridge in Autopista Central Colombia Hispasat Third lane in the Bogotá-Villavicencio toll road, which includes significant road improvements New launches planned in 2017: Hispasat 36W-1 (launched on January 28, 2017), Amazonas 5 and Hispasat 30W-6 satellites. New operational and control center in Río de Janeiro (Brazil) 23 6 3 . I n v e r s i ó n c o n t i n u a © 2014 ESA - CNES - ARIANESPACE / Photo Optique Video CSG. 88 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Efficient toll roads Modern solutions The path toward greater efficiency in mobility is linked to the modernization of payment systems, with greater automation or the elimination of tollgates, therefore reducing congestion, fuel consumption and vehicle emissions. 7.4 60% of transactions conducted via electronic toll collection systems (+2.3 pp) Emovis Abertis’ technology and services branch Emovis is an expert in the design, implementation, operation and maintenance of barrier-free mobility solution (free-flow) through electronic tolls. Emovis kicked off this year focusing on free-flow technologies destined to set the future trend of toll systems in Europe. Among its most outstanding assets, the management of the Dartford Crossing is one of the main accesses to the city of London, with a daily average of 150,000 vehicles; and M-50, Dublin’s ring road, with an average of 120,000 vehicles. The Abertis Group continues to move forward with new technologies for payment models. In France, the first Bluetooth-based payment tests have been conducted after the conclusion of pilot tests involving NFC technology. This would allow cars to drive through the gates without stopping. In Spain, projects are under way to enable mobile payments as well as the use of radiofrequency wave stickers for users in certain sections of the toll road. At the Group level, a significant milestone in this sense has been the alliance between the two electronic toll collection device companies Bip&Drive – a company partially owned by Abertis – and Bip&Go – a subsidiary of Sanef – for the launching of the first Vía-T device in Europe for all toll roads in Spain, France and Portugal. The new device, which runs on DSRC (Dedicated Short Range Communication) technology, simplifies traveller transit and transactions. Free-flow on AP-7 toll road Autopistas has begun work to implement a technological system that will definitively eliminate the use of gates in passenger car toll lanes at La Roca (Barcelona) on the AP-7 toll road. Vehicles will now be able to drive through the toll without stopping at a speed of 60 km/hour, resulting in a more comfortable and fluid traffic. As a result, the AP-7 toll road will be the first high quality and high capacity road in Spain to implement the free-flow system, a system that is already a reality in some European countries and where payments take place automatically without gates and the need for stopping. In total, the free-flow system implementation Project at La Roca will entail an investment of 1.4 million euros. 89 . 7 4 E f f i c i e n t t o l l r o a d s 90 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 In Chile, the control takeover over Autopista Central opens the door to analyzing the possibility of creating a new operating company in view of establishing a joint invoicing scheme among the users of Autopista Central, Ruta 68 and Ruta 57, which would result in more comfort for the client. Other interoperability systems are also being studied in other markets of the Group through Emovis, including Ireland or the United States. Chile is driving the use of Via-T in inter-city toll roads. The “Stop and Go” system of Rutas del Pacífico envisions the implementation of a post-payment method in all tolls, improving client service capabilities in manual toll stations while reducing client waiting times. As a result of these improvements, the percentage of automatic transactions involving electronic toll collections has increased up to 60% of the total in 2016, with Puerto Rico and Chile (with the incorporation to the Autopista Central perimeter) leading at 98.6% and 82.4% respectively. Modernization in Puerto Rico In 2016, Metropistas has worked on an ambitious network modernization project. Toll gates were removed and new payment methods were introduced that reduced congestion, fuel consumption and vehicle emissions, as they no longer had to stop at the gate. The following stand out among the main innovations: • Dynamic toll lanes which, through the use of sensors that evaluate traffic, speed and congestion, allow switching between tariffs in real-time. • One hundred per cent free-flow technology, replacing manual and electronic payment lanes with 12 free-flow gates. This System results in less congestion, less accidents, less emissions and increased safety for employees and clients. • Reversible lanes as a function of the time of the day, resulting in increased lane capacity during peak hours. As a result of this plan, 98% of transactions today take place automatically via electronic toll payment collection. 91 . 7 4 E f f i c i e n t t o l l r o a d s . | 7 5 C l i e n t f o c u s Client focus Continuous investment, commitment to road safety and a focus on new technologies are the Group’s instruments that unveil a clear goal: satisfaction and good client relationships, so that their travelling through Abertis’ toll roads can be a safe, comfortable, fast and easy experience. 7.5 100% occupation in Truck Parks in Spain 100% of companies have online communication channels Toll road open-day Strategic objective Provide quality service (flow, comfort and information to the client). 93 . 7 5 C l i e n t f o c u s 92 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Continuous improvement Social media information Clients of Abertis’ toll roads have benefitted in 2016 from steadfast work destined to improving the network, modernizing payment systems and new client information systems, with similar efforts made also to improve rest areas. In 2016 in Spain, Autopistas completed an extensive program geared at improving rest areas across its entire network. Looking at 2017, Autopistas is in the process of definining a “Letter of Commitment to Clients” which will modify and improve client-oriented processes. Truck parks- service and rest areas exclusive for heavy vehicles developed by Autopistas in Spain- have recorded 100% occupation this year. The clients’ perception of the majority of the Group’s division have improved, as evidenced by the outcome of the latest client satisfaction surveys (see table below). Real-time information One of Abertis Group’s priorities is continuous communication with its clients, the users of our toll roads. For this purpose, all business units have several communication systems based on client needs including e-mail, phone, in-person and electronic chat-enabled customer service centers, social media, radio broadcast, mobile applications, streaming of meetings, face-to-face events, etc. Autopistas has been working on an extensive Social Media Plan. Among other measures, its new website look and feel stand out along with the reactivation of its Youtube and Linkedin channels and the launching of a new Twitter channel @autopistaclient. Several events have been designed with the toll road as the venue for activities for children, employees and the general public, with the goal of bringing users closer to the infrastructures. This is the case of events that were held in the Granollers and San Rafael’s operations and road safety centers, and the “Toll Road Party” in France last May. rd In the social media and new technology space, we must also highlight the follow-up of Arteris’ 3 Road Safety Forum. All of the Group’s companies offer information through websites and all have at least one informative channel in social platforms. Abertis Group’s online communications channel Other Client satisfaction index The Group’s different concession holders conduct periodic client satisfaction surveys with the purpose of monitoring their expectations and identifying actions for improvement. The different methodologies used in each country allow obtaining a direct result of the level of user satisfaction in different scales (over 10 or over 100) or a percentage value over the total number of satisfied clients. Company 2016 2015 Autopistas (Spain) Sanef (France) Sapn (France) Arteris (Brazil) Autopista Central (Chile) A4 (Italy) Metropistas (Puerto Rico) Hispasat 6.95 8.1 7.9 8.04 41% 70% 7.6 82.9 6.97 8 7.9 8.3 - - 7.2 80.3 Value creation SHAREHOLDERS Figures and results Efficiencies Financial management Shareholder remuneration SOCIETY Fiscal contribution Contribution to the environment Contribution to the community Supplier management and supply chain 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 HUMAN TEAM 8.9 Committed to talent 8.10 Professional development 8.11 Health and Safety 896 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Value creation Status of the Added Value-Consolidated Annual Accounts The economic value generated during the fiscal year has amounted to 5,207.6 million euros, 75% of which have been distributed. The remaining 25% have been retained by the organization. -5% 1.3% 22.4% 3.9% 12.5% 12.7% 10.3% 20.2% 0.1% 0.4% 11.2% Suppliers Personnel costs Financial costs Corporate tax and other taxes Environnmental costs Investment in social initiatives Dividends Other expenses Amortizations Provisions Reserves Abertis’ reason for existence is value creation. As a reference company in the industry, we combine financial strength, industrial experience and a long-term commitment with our shareholders, clients, collaborators, public administrations and citizens in general. 8 Through this vision, we want to contribute to the general growth of the countries in which we operate, not only from a purely economic perspective, but also through the social impact of our activity and our dividends and salaries, improved road infrastructures that are the result of continuous investment, territorial development in our relationship with suppliers and clients or the financing of wellbeing through taxes, to name only a few. Local footprint assessment In 2017 Sanef has calculated the socioeconomic impact of its toll roads on French territory. This study, which is based on the innovative tool Local Footprint, shows how Sanef’s activity has secured 18,600 jobs (direct, indirect and induced), that is, 6.8 times the number of direct jobs at the company. Likewise, according to this study, the concession holder contributes with 2,320 million euros to France’s GDP. In one year of operation alone, Sanef has injected into the French economy: €180 Mn in salaries €301 Mn in the purchase of goods and services €450 Mn in taxes 97 8 . V a l u e c r e a t i o n Figures and results Strategic objectives 8.1 Grow in new concessions profitably by applying financial discipline 99 . S H A R E H O L D E R S | 8 1 F i g u r e s a n d r e s u l t s SHAREHOLDERS Promote agreements with the Administrations in order to increase average life and optimize tariffs Increase turnover and efficiently manage expenses while growing recurring cashflow Revenue: EBITDA: EBIT: € 4,936 +6% Mn € 3,250 +9% Mn € 1,946 +13% Mn Discretional cash-flow: Net profit: € 2,241 +15.3% Mn (like-for-like variations) € Mn 796 +13% 100 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Consolidated figures In 2016 the consolidation of a favorable economic setting has enabled us to continue along the growth path in our activities in Spain, France and Chile, despite the decrease in heavy vehicle activities in Brazil. The addition of Italy since September 2016 has also contributed positively to the increase in activity. The Group continues to focus its efforts on highly selective growth, which in 2016 was characterized by consolidation and strengthening operations of its position in existing investee companies (as in the case of the full control takeover of Autopista Central and the closing of the Public Bid on Arteris’ minitory stakes in May) and acquisition operations of new assets, such as the purchase of 51.4% of A4 Holding. The results of Abertis in 2016 are influenced by the incorporation into the company’s perimeter of assets acquired during the fiscal year. 101 . S H A R E H O L D E R S | 8 1 F i g u r e s a n d r e s u l t s Profit and loss Account January-December 2016 (€Mn) Dec. 2016 Dec. 2015 Variation Operating revenue 4,936 4,378 Like-for-like revenue Operating expenses Ebitda Like-for-like Ebitda Amortization Asset impairment Operating result (Ebit) Operating result (like-for-like) Financial result Result equivalent Corporate tax Discontinued operations (Cellnex and airports) Minority interests Net profit Net profit (like-for-like) -1,695 3,240 -1,686 2,692 1,295 -0 1,946 -620 -10 -304 0 -216 796 -1,135 -1,622 -65 -1,116 -51 2 2,721 378 1,880 13% 6% 1% 20% 9% 13% -58% 13% 102 Revenue t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 The Group confirms the positive trend in road traffic in its toll roads, which continues to grow at a good pace in its main markets. Worth noting are the levels of activity achieved in Spain, traffic growth in France as well as the contribution to Italy and Chile’s growth. Conversely, Brazil has kept a decreasing trend which had already began in 2015 due mainly to a significant drop in heavy vehicle traffic as a result of the negative evolution of the Brazilian economy. Revenue increased 12.7% due mainly to the impact of the full takeover of Autopista Central in January 2016, the acquisition in September 2016 of 51.4% of A4 Holding, the consolidation via global integration of Túnels since November 2015, the positive evolution of the activity and the impact on the review of average tariffs of toll road concession holders. These positive impacts have partially offset the negative trend of the Brazilian real, the Chilean peso and the Argentine peso during the fiscal year, whose average exchange rates have recorded a depreciation of 5%, 3% and 59% respectively with respect to the 2015 close. The satellite infrastructure sector also shows a positive trend, as a result of the expansion of orbital position capabilities. Over 70% of Abertis’ revenue comes from outside of Spain. The French market has consolidated its positition as the Group’s biggest market (34%), followed by Spain (26%). 5% 8% 26% 9% 15% 3% Revenue 34% Spain France Italy Brazil Chile Rest Hispasat Revenue (Mn€) 4,936 4,378 2016 Traffic Spain France Italy Brazil Chile RestTotal Abertis 2016 Revenue Spain France Italy Brazil Chile Puerto Rico Argentina Rest Telecommunications Km 1,559 1,761 236 3,250 771 2657,842 Mn € 1,314 1,658 149 718 462 130 189 81 229 Holding Total Abertis 54,936 ADT 20,090 24,473 62,612 17,682 25,779 78,219 23,877 Var. +5.3% +1.9% +2.6% -2.8% +6.4% +0.4%+1.3% 103 . S H A R E H O L D E R S | 8 1 F i g u r e s a n d r e s u l t s 104 Ebitda Financial result t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Gross operating margin (Ebitda) reached 3,240 million eruos (+20.4%). When discounting the perimeter impacts and other non-recurring ones, the like-for-like Ebitda grew 8.5% over the previous year. The result of the operations (EBIT), when discounting the perimeter impacts and other non-recurring ones in the past 2015 fiscal year associated to impairments, has grown 12.8% in like-for-like terms. 5% 5% 32% 11% 11% 2% Spain France Italy Brazil Chile Hispasat Rest Ebitda 34% Ebitda (Mn€) 3,240 2,692 Ebitda 2016 Spain France Italy Brazil Chile Puerto Rico Argentina Rest Telecommunications Holding Total Abertis Mn € 1,079 1,112 71 363 348 90 56 5 175 -603,240 The net financial result amounts to -620 million euros, -737 million euros of which correspond to the financial cost of net debt, which represents an average cost of 4.8%. The rest (117 million euros) reflect other impacts, such as the appreciation according to NIIF 3, after the control takeover of Autopista Central, the assets and liabilities already held in this company (293 million euros) and the breakage costs paid for the refinancing operations made by Abertis (-63 million euros). Companies consolidated by the equity method The negative contribution of companies registered via the equity investment method is a consequence of impairments in the fiscal year in the stake held in Hisdesat through Hispasat, worth 18 million euros. Corporate tax Expenses corresponding to corporate tax amount to 304 million euros, with the following tax rates in the main countries where Abertis operates: Spain, 25% (vs. the previous 28%); France 34% (vs. a previous 38%); Italy, 31.4%; Brazil, 34% and Chile, 24% (vs. the previous 22.5%). Results The 2016 consolidated results attributable to shareholders reached 796 million euros, which in like-for-like terms equals a growth of 13% when compared to 2015. 105 . S H A R E H O L D E R S | 8 1 F i g u r e s a n d r e s u l t s 106 Cash flow t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 During 2016 Abertis has generated a gross cash flow (before investments and dividend payments) of 1,901 million euros. Discretional cashflow amounted to 2,214 million euros, which in like-for- like terms represents 15.3% above that of 2015. The Group’s cash flow is sufficient to sustain the investment plan that is under way at the company, which seeks to improve its asset infrastructure, and also to allow the company to uphold one of its key stragetic pillars: shareholder remuneration. Balance Statement st Total assets on December 31 over the 2015 year close. This is mainly due to the impact of the takeover of Autopista Central in January 2016 and the acquisition of A4 Holding, both of which were consolidated via global integration, and the impact on appreciation at the closing of the Brazilian real, the Chilean peso and the US dollar. 2016 reach 31,186 million euros, which represents a 21.2% increase The net consolidated equity reached 6,901 million euros, which is 29% above the existing one at the closing of 2015 and which was affected by the positive trend in conversion differences, perimeter changes, the portion assumed by minority shareholders of the capital increases made by Participes, Arteris and Metropistas as well as the return of the contributions made by HIT’s minority shareholders. Leaving aside non-controlling interests, the consolidated net equity has increased 9.7%. 42% Assets €31,186 Mn 58% 78% 22% Fixed tangible and intangible assets (w/o goodwill) Other assets Liabilities €31,186 Mn Net equity Current and non-current liabilities 107 . S H A R E H O L D E R S | 8 1 F i g u r e s a n d r e s u l t s Balance Statement January-December 2016 (Mn€) Dec. 2016 Dec. 2015 Tangible and intangible assets Financial fixed assets Current assets Cash flow Assets held for sale Total assets Net equity Non-current financial debt Non-current liabilities Current financial debt Current liabilities Liabilities held for sale Total liabilities 22,506 4,281 1,819 2,529 50 31,186 6,901 15,210 5,348 1,695 1,988 44 31,186 17,583 4,531 1,403 2,222 0 25,739 5,349 13,261 3,991 1,515 1,623 0 25,739 108 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Investments Main investments in 2016 2016 Investments Operations Expansion Inorganic Expansion Total Expand toll road capacity, specially those located in Brazil that depend on the Federal State, and in France, in order to improve and extend the network; as well as in Puerto Rico, which is a result of the agreement to extend the concession term in Metropistas. Purchase of the additional 50% of Autopista Central (948 million euros). Purchase of 51.4% of A4 Holding for 594 million euros (589 million euros to be paid in 2023 plus 5 million paid on the date of purchase; 474 million euros in total corresponding to its current value on the date of purchase). Purchase of a minority share in Arteris (68 million euros), after having completed the Takeover Bid process over the total shares. 10-year extension to the concession term of Metropistas after the agreement reached with Autoridad Portorriqueña de Carreteras y Transportación (ACT) for the modification of the concession contract (90 million euros). Hispasat investments in satellite projects (164.4 million euros). 4% 39% 57% Investments €2,603 Mn M&A Expansion Operations Toll roads Spain France Italy Brazil Chile Rest Telecommunications Holding Total Abertis 86 8 37 3 28 8 3 5 192 854 24 112 3 529 62 123 166 1,491 2,432 0 0 474 70 948 0 0 31 149 480 627 1,019 126 171 12,603 01,020 01,491 109 . S H A R E H O L D E R S | 8 1 F i g u r e s a n d r e s u l t s 110 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Efficiencies Efficiency plans 8.2 The Abertis Group fosters a working and operating method that focuses on resource efficiency and cost reduction with new procedures: process automation, leveraging of Group synergies, centralization of functions and improvements to the supplier selection procedures and the Groups’ products and services, among others. Improved like-for-like Ebitda margin Spain: France: Brazil: +190 bps +170 bps +130 bps Chile: +40 bps Strategic objectives Achieve efficient infrastructure management Manage construction work and investments within deadlines and costs targets Increase process efficiency The Group’s results are favored by the implementation of a series of efficiency improvement and operating cost optimization measures, which the Group continues and will continue to push in the coming years. After having concluded the 2011-2014 efficiency plan beyond initial expectations – generating a cumulative of 700 million euros – the Group is currently implementing a new efficiency plan for the period 2015-2017, which must allow consolidating the efficiencies obtained to date while pursuing improvements in operational efficiency and cost optimization. In Autopistas, efficiency is at the core of the company. After important advances made between 2011 and 2014, the Spain division is currently immersed in a process of consolidation of the initiatives undertaken in the last years, such as the toll automation and control center reorganization process, which have been completed in full. The company is currently working on the ambitious FOCUS project, whose purpose is the creation of a new and more efficient and transparent management model that can position it to face future challenges in the concession, toll management and mobility sectors in Spain. In France, the Opteam program has been developed, a three-year program that seeks to reach 90 million euros in efficiency until 2017. The advances of the last few months have driven Sanef’s efficiency ratio above the concessions industry’s average in France, one year ahead of schedule. In Brazil, the efficiency plan focuses on two lines of action: the increase in revenue and the costs reduction. For this purpose, Arteris has homogenized its proceses, by transferring several administrative and back-office functions to a single site, prioritizing quality, safety and client service. With this Plan, Arteris today accumulates savings of 50 million reais (about 15 million euros). Hispasat continues to maintain a high Ebitda percentage, above 78% in like-for-like terms and isolating extraordinary results, while continuing with its investment phase. Several of the Group’s best practices have been implemented in the rest of the business units, with a particular focus on toll automation, process unification and the leveraging of synergies, to name a few. In the operational sphere, also the new technologies and barrier-free payment methods imply significant advances in efficiency, not just economically, but also social, through a reduction in traffic congestion, travel time and CO2 emissions. 111 S H A R E H O L D E R S | 8 2 E f f i c i e n c i e s . 112 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Financial management Financial operations in 2016 Thanks to its debt management policy, the Abertis Group has a healthy financial structure with balanced debt maturity. 90.2% of long term debt (+0,4%) 5.9 years average maturity 66% of non-recourse debt 1.1% average cost of corporate bond issues in 2016 8.3 €2,000 Mn issued in bonds in 2016 90% of fixed rate debt (+1%) Strategic objective Maintain a healthy and efficient financial structure. A 1,150 million euro bond issue by Abertis Infrastructures with a maturity date in May 2026 and a coupon of 1.375%. A 500 million euro bond issue by Abertis Infrastructure with a maturity date in February 2027 and a coupon of 1.00%, a historical minimum for the company. A 300 million euro bond issue by Sanef with a maturity date in October 2028 and a coupon of 0.95%. Autopista del Sol’s 27,000 million Chilean peso bond issue buyback (approximately 40 million euros, as of the date of the operation) with a maturity date in 2018. Two loans of US$50 million contracted by Arteris, one of which was cancelled during the fiscal year, while the other was renewed. In addition, another 119 million Brazilian real loan was contracted (approximately 35 million euros at the close of December 2016). Hispasat draws 65 million euros from undrawn loans contracted in previous fiscal years with a maturity date in December 2026. Issue of a 65 million Brazilian reales bond (approximately 19 million euros at the close of December 31, 2016) with a maturity date in 2025 and a coupon of 15.05%, by Fernão Dias. These operations allow extending our debt maturity profile and highlight the efficient active management of the company’s balance. Furthermore, they strengthen the capability of the company to leverage the opportunities offered by the credit market to secure attractive terms and continue to generate value for its shareholders. 2016 2015 Net debt Net debt /Ebitda Available lines of credit €14,377 Mn 4.4x €3,431 Mn €12,554 Mn 4.7x €3,548 Mn 113 S H A R E H O L D E R S | 8 3 F i n a n c i a l . m a n a g e m e n t 114 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Financial structure 23 . I A C C O N I S T A S | 7 3 G e s t i ó n f i n a n c i e r a Following the policies defined by the Board of Directors, the financial structure of Abertis Group seeks to limit the risks to which it is exposed due to the nature of the markets in which it operates (see section “Risks”). Abertis maintains a high percentage of debt at a fixed rate through hedging, therefore minimizing to a large extent any possible effects of stress on the credit market. Debt maturity Less than 1 year 1 to 3 years 3 to 5 years 5 to 10 years Over 10 years Credit Rating Agency Assessment date Rating Outlook Fitch Ratings Long term Short term Standard & Poor’s 2016/05/09 2016/05/09 BBB+ F2 Stable Long term 2016/06/27 BBB Stable Shareholder remuneration Evolution of share Price 116 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Abertis’ objective is to offer its shareholders the best combination of growth and profitability. 8.4 Strategic objective Sustainable growth in share value and retribution. Closing price Appreciation Maximum price Minimum price Number of shares Capitalization Cumulative yield *2011-2016 2016 13.30 euros -3.1% 14.33 euros 11.64 euros 990,381,308 €13,200 Mn 69% 117 S H A R E H O L D E R S | 8 4 S h a r e h o l d e r . r e m u n e r a t i o n 4/12 GSM 2016 4/21 Agreement for 10-yr extension in Metropistas 05/10 1,150 Mn€ Abertis bond issue 09/08 Acquisition of 51.4% of A4 Holding closed 10/10 Agreement with ADIA to enter company’s capital in Chile 12/27 Agreement for the acquisition of assets in India 1/21 Acquisition of the remaining 50% of Autopista Central 110 105 100 95 90 85 80 75 * Cumulative and annual yield is calculated by including stock market appreciation, bonus share issues and dividend yield, for a shareholder who would have purchased on December 31, 2011 and has not sold his/her shares until December 31, 2016. Abertis stock price IBEX 35 index Ene Feb Mar Abr May Jun Jul Ago Sep Oct Nov Dic 118 Dividend Bonus share issue t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 In April Abertis paid a supplementary dividend for the 2015 fiscal year of 0.36 euro per share, whereas in November of 2016 it paid the first dividend payment of 0.36 euro (gross) per share corresponding to the 2016 fiscal year. Abertis’ Board of Directors has agreed to propose to the 2017 General Shareholders Meeting a second dividend payment of 0.37 euros (gross) corresponding to the 2016 fiscal year, which, added to the first dividend paid in November 2016, implies a direct retribution to the shareholder in the form of ordinary dividends of 0.73 euros (gross) for the 2016 fiscal year, representing 11% more over the amount paid in 2015. Ordinary accrued dividend (€Mn) TACC: +8,1% 723.0 650.8 595.9 564.6 537.8 512.2 402.2 422.3 443.4 357.5 The General Shareholders Meeting held on April 12, 2016 agreed to undertake a new bonus share issue following a proportion of one new share for each 20 old ones. The rights over the shares were negotiated between May 30 and June 13, 2016, with a maximum price of 0.699 euros and a minimum price of 0.683 euros. The theoretical value of the right was 0.697 euros. The new shares were admitted to trading on June 24 with identical political and economic rights as the existing shares. Shareholder structure* 73.5% 22.3% Criteria Caixa, S.A.U (1) Inmobiliaria Espacio, S.A (2) 4.2% Free Float 119 S H A R E H O L D E R S | 8 4 S h a r e h o l d e r . r e m u n e r a t i o n 1st payment 2nd payment As of January 23, 2017, Inmobiliaria Espacio, S.A. (through OHL Emisiones S.A.U.) has sold 24,759,486 shares of Abertis Infraestructuras, S.A. representing 2.5% of the share capital, after which the stake of Inmobiliaria Espacio, S.A. is 1.74%. * Shareholder structue as of 12/31/2016 (1) 15.08% holding through Criteria Caixa, S.A.U. and 7.17% through Inversiones Autopistas, S.A. (2) 1.74% direct holding and 2.50% through OHL Emisiones S.A.U. Fiscal contribution SOCIETY in tax contributions Abertis’ fiscal policy is based on transparency and the responsible and prudent application of tax laws. 8.5 1,825 Mn €231,607 tax contribution per kilometer of directly managed toll road 121 S O C I E T Y . | 8 5 F i s c a l c o n t r i b u t i o n The group is committed to its duty to pay taxes in order to contribute to public finances, which provide the essential public services for the progress and socio-economic development of the countries in which it operates. Since 2014, Abertis voluntarily adheres to the Code of Good Tax Practices, which contains a set of recommendations that have been agreed between the Spanish Agencia Tributaria (Tax Agency) and the “Large Company Forum”. The company meets the operating principles of the aforementioned Code. Following the principles that have guided its actions since its incorporation, Abertis avoids the use of opaque structures, processes or systems with fiscal purposes that seek to shift profits to low tax jurisdictions (tax havens) or prevent tax authorities from identifying the end party responsible for the activities or the ultimate owner of the goods or rights involved. Additionally, the Board of Directors is notified on an on-going basis about the fiscal policies being applied. 122 2016 tax contribution (millions of euros) t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Country* Taxes paid** Taxes collected*** Total contribution France Spain Brazil Argentina Chile Italy Others Total 525 153 148 54 28 25 14947 2016 tax contribution 305 336 45 74 83 27 8878 830 489 193 128 111 52 221,825 Abertis makes quantifiable economic and social contributions through the payment of taxes to the Administrations in the different countries in which it operates. Said payments imply a strong effort in order to comply with all formal notification and collaboration obligations before the Spanish Tax Agency as well as with all relevant responsibilities. * Perimeter changes with respect to 2015: Spain does not include the Cellnex Group, Chile includes Sociedad Concesionaria Autopista Central S.A, and Italy includes Grupo A4 Holding since its date of acquisition (16/9/8). Others include the United Kingdom, The Netherlands, Puerto Rico and Mexico, among others. ** Taxes paid are those that represent an actual cost to the company (payment of taxes on profit, local taxes, indirect taxes on goods and services and company social security contributions). *** Taxes collected are those that have no impact on results but are collected by Abertis on behalf of the Revenue Service or are paid on behalf of other taxpayers (Value Added Tax, withholding tax and worker social security contributions). 123 S O C I E T Y . | 8 5 F i s c a l c o n t r i b u t i o n Following OCDE’s cash basis based methodology, the total tax contribution of Abertis Group in 2016 amounted to 1,825 million euros, 947 and 878 of which have corresponded to taxes paid and taxes collected respectively. In this sense, the Abertis Group includes all dependant companies that consolidate through the global integration method. For each 100 euros of Abertis’ revenue, 38 euros are destined to the payment of taxes. Specifically, 20 euros go to the payment of taxes paid and 18 euros to the payment of collected taxes. Likewise, the tax contribution per kilometer of toll road directly managed by Abertis arises to 231,607 euros, of which 119,309 euros correspond to taxes paid and 112,298 euros to taxes collected. Taxes collected Taxes paid €71 Mn €84 Mn €723 Mn €289 Mn €95 Mn €878 Mn VAT and other indirect taxes Employment related taxes Other taxes €947 Mn €129 Mn €434 Mn Profit tax Social Security Indirect taxes Fees and others Breakdown of total fiscal contribution 1%3% 6% 45% 7% 11% €1,825 Mn 27% France Spain Brazil Argentina Chile Italy Other 124 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Contribution to the environment Climate change 8.6 The fight against climate change, improved waste generation and end of life management practices, the boost to biodiversity and noise reduction are Abertis’ priority environmental aspects. The company has set a number of goals focusing on carbon footprint reduction, the development of products and services that carry positive environmental aspects and innovation based on the circular economy. Mn22 € destined to the environment (+15%) -5% -3% total CO2 emissions Mn revenue) (Tn/ CO2 emissions (scope 1 Mn revenue) and 2) (Tn/ € € Strategic objectives Reduce the carbon footprint of the organization and its activities Develop products and services with positive environmental and social criteria Innovation based on circular economy criteria of the activity’s value chain Enhance and preserve natural capital Abertis takes part in the Carbon Disclosure Project (CDP), an initiative promoted by the investment community with the goal of evaluating and measuring the organizations’ performance in climate change related matters. Thus, each year the organization prepares and publishes the CDP survey in which it provides details about the risks and opportunities that derive from climate change, as well as associated management mechanisms and performance data. In 2016, Abertis was included in the “A” List of the Carbon Disclosure Project (CDP), the top recognition of organizations that lead emissions reduction and climate change mitigation initiatives. On annual basis, Abertis calculates the carbon footprint of its activities according to the main international standards on the subject, as a performance indicator in the sphere of climate change. The emissions included in the carbon footprint calculation are the following: Scope 1 emissions: emissions from direct fuel consumption and cooling gases. Scope 2 emissions: indirect emissions from electricty consumption. Scope 3 emissions: other indirect emissions from suppliers to the organization and the use of products and services supplied to the organization (including vehicles travelling on our toll roads). CO2 emissions in 2016 The trend of the 2016 emissions is affected by the inclusion of Autopista Central (Chile) and SEBPNL (France) to the CSR perimeter. The carbon footprint analysis includes the emission intensities based on activity and business revenue. In 2016, the Group had recorded a total volume of 17.5 million tons of CO2. Of this figure, only 0.7% of emissions correspond to scope 1 and 2. Out of the remaining, a 93% is associated with vehicles travelling on the Group’s toll roads. 125 S O C I E T Y . | 8 6 C o n t r i b u t i o n t o t h e e n v i r o n m e n t 126 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 In relative terms, the total CO2 emissions amounted to 3,910 tons for each million euros of revenue (-5%). With respect to the sum of scopes 1 and 2, the resulting figure was of 26,3 tons per each million euros of revenue, which represents a drop of 3.1%, deriving mainly from the reduction in fuel use of the vehicle fleet in scope 1. CO2 emissions (scope 1 and 2) per country 13% 32% 3% 13% 18% Brazil Spain France Chile Argentina Puerto Rico Waste and wastewater 21% Practically the majority of the waste that was generated by the Group (235,782 tons) comes from toll road activities. As with materials consumption, they are directly related to the type and volume of the works being performed, which therefore produces significant fluctuations in the related data. In the case of satellite telecommunications, the main waste from the activity are satellites that reach the end of their lives. The manner in which these are managed today follows the legislative framework in force, which establishes that on reaching the end of their useful life the satellite’s orbit is shifted to a specific space destined for such purpose. Eighty-two percent of non-hazardous waste generated is construction waste, where 52% of hazardous waste generated is common wet sludge. Ninety-six percent of non-hazardous waste and almost 100% of hazardous waste have been adequately treated by authorized waste management agents. Autopistas continues to work to identify the possibilities of reusing materials and waste for the conservation of road surfaces, with the goal of promoting circular economy processes. For more information, please see the Annex to this Report. 127 S O C I E T Y . | 8 6 C o n t r i b u t i o n t o t h e e n v i r o n m e n t In turn, wastewater generated across all businesses is for the most part similar to domestic water, although in some cases, during toll road activities specific treatment must be applied before they are eventually managed. The appropriate systems and facilities are available for this purpose. Biodiversity and noise Almost 1,200 kilometers of toll roads are located in biodiversity zones of special protection, representing a total of 61,502 hectares, mainly in France, Brazil and Spain. In general, all concession holders have environmental impact prevention measures for the activities being performed. The implemented initiatives include emergency plans, conservation and housekeeping plans, environmental monitoring plans and environmental liability reclamation plans in addition to awareness and education campaigns. Furthermore, the installation of wildlife crossings or passageways and enclosures constitutes one of the main tools for avoiding collision with animal species, with a special focus on particularly protected species such as those included in the IUCN lists. Worth noting in 2016 is the renewal in France of a specific biodiversity management certified system as a response initiative for managing plant and wildlife adjacent to the infrastructures. The installation of acoustic screens and the measurement of the acoustic impact via control points installed on the toll road are the main actions that have been implemented with respect to noise, totalling 3,282 kilometers analyzed. In these sense, France has a specific monitor for managing this aspect. Business revenue-based environmental management Seventy-four point eight percent of the business’ turnover has implemented an environmental management system based on the ISO 14001 international standard. Implemented - ISO 14001 Certified - ISO 14001 No formal system 128 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Contribution to the community Near 8.7 300 Abertis develops an extensive program of collaboration with the community that focuses on projects related to road safety, the environment, culture and social accessibility. Mn6 € 55% initiatives destined to social initiatives and sponsorships of social investment is long-term Strategic objectives Generate positive synergies with local communities. Social initiatives and sponsorships 2016 Milestones Projeto Viva (Brazil) : Arteris has executed a total of 37 initiatives as part of the road safety campaigns under the name Viva Motociclista, Pasarela Viva and Viva Ciclista. The action addresses road users and consist of basic health exams and mechanical inspections of motorcycles. 129 S O C I E T Y . | 8 7 C o n t r i b u t i o n t o t h e c o m m u n i t y Grande Guerre (France) : Sanef has taken part in the World War I Centennial Mission, with the sponsorship of the main commemorative events. In this context, two books were published on the matter: the Routard Guide “The Great War 14-18. The roads of memory” and the book “Fields of Battle. Lands of Peace” by photographer Michael St Maur Sheil. Red Viva (Chile) : The CSR program from Abertis’ Chilean subsidiary, has developed several inclusion programs among which “Fútbol Calle” stands out, a project geared at nearby neighbors of toll roads inaugurated by football player Javier Mascherano. The project gives them the opportunity to choose to represent their country in the Homeless Football World Cup 2017, to fight poverty, violence and drug addiction. Contribution to culture 2016 milestones 1% cultural (Spain) : In 2016 Autopistas has continued working on projects in the country that sum up a total of 1.4 million euros. Two projects have been completed in the fiscal year: the rehabilitation of the local Archeological Museum in Banyoles and the restoration and conversion into a museum of the roman villa Pla l’Horta in Sarrià de Ter (both in the province of Girona). Gaudí and Picasso exhibitions (Brazil and Chile) Barcelona 1900” and “Picasso: showcased in Chile. mano erudita, ojo salvaje : Arteris has sponsored the “Gaudí, ” exhibitions. The latter was also The Abertis Foundation One of the four pillars of Abertis’ Corporate Social Responsibility (CSR) Master Plan entails the involvement in the community and businesses of the different territories where the Group operates. The Abertis Foundation has taken on this mandate from the beginning, acting in the spheres of road safety, environment and social action. 130 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Castellet Castle, headquarters of the Foundation, also hosts the headquarters of UNESCO’s International Center for Mediterranean Biosphere Reserves, which coordinates a network of 60 reserves in 15 Mediterranean countries with the goal of establishing bridges for dialogue, cooperation and exchange of knowledge and experiences. Main initiatives in 2016 Road Safety Program: “You’ve got one life left” : Awareness initiatives in nightlife hotspots for the young in Madrid and Catalonia aimed at alerting these about the risks of driving under the influence of alcohol or drugs or about the dangers of distractions caused by the use of mobile phones. Road cooperant : a project taking place in Barcelona and Madrid, where young persons with Down Syndrome observe and take notes about mobility aspects around schools in order to bring forward proposals for improvement. KanGo! : More than 200 students from 12 schools have taken part in the second course of the project that combines road safety and impaired people in Barcelona. Environmental: Presentation of the UNESCO International Center in the 4 Reserves celebrated in Lima (Peru). World Congress of Biosphere th Participation in the United Nations Climate Change summit – COP22 – in Marrakech (Morocco). The Universitat Autònoma de Barcelona (UAB) and the Abertis Foundation create the UAB Campus of Mediterranean Biosphere Reserves, which is linked to the UNESCO International Center for Mediterranean Biosphere Reserves. Inauguration of the International Master’s in Environmental, Social and Economic Studies at UNESCO’s International Center. 131 S O C I E T Y . | 8 7 C o n t r i b u t i o n t o t h e c o m m u n i t y Abertis Academic Chair Awards Abertis’ International Network of Academic Chairs for Transportation Infrastructure Management and Road Safety celebrated a new edition of its International Awards. 2016 was the first year where students from universities from the five countries that make up the International Network of Academic Chairs (Brazil, Chile, Spain, France and Puerto Rico) have taken part. The main novelty in the next calls for the Abertis Awards is the creation of a third category: the Abertis Road Safety Award dedicated to research in this area. Distribution of community contributions by Abertis Group in 2016 0.6% 0.9% 8.2% 17.5% 30.4% 12.1% LBG Classification 9.5% 17.8% Abertis Classification 15.7% 8.4% 30.6% 14.9% 33.4% Education Health Socio-economic development Environment Art and Culture Social welfare Humanitarian aid Other Training/Research Environment Mobility and Road Safety Socio-economic development - Social accessibility Cultural accessibility Methodology from the London Benchmarking Group (LBG), which enables the standardization of items according to different classifications and provides tools for measuring its impact. 132 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Supplier management and supply chain Abertis works with qualified suppliers that have proven technical, financial and ethical credentials, and bases its relationship with the aforementioned suppliers on integrity, confidentiality, honesty, transparency and equal opportunities and conditions. 98% of purchases ordered from local suppliers 100% critical suppliers assessed 8.8 98% of tenders launched include social and environmental clauses The information systems linked to the different supplier management tools were integrated in 2016. These provide explicit cross-verified information between said tools and generate an objective quantitative assessment that aggregates all dimensions being analyzed: economic performance and product and service offering, commercial risk, CSR Scoring, documentation, existing management systems and audits completed. The aggregate assessment is reflected in the supplier profiles in graphical format through a direct three-tier visualization, and is available on all channels through which order and contract management takes place. 98% of formalized supplier tenders in 2016 have included specific clauses linked to social and environmental aspects. In 2016, Abertis’ Purchashing Department has defined a formula that combines the sum of all of the assessments captured in the satisfaction survey, which will provide the supplier’s performance score recorded by SAP users. This will be supplemented with other data extracted from the supplier qualification database. This final score will display a value and a color in a traffic light-type gauge that will be displayed in the supplier file in SAP and which will also be available for visualization on launching an order in SAP. 133 S O C I E T Y . | 8 8 S u p p l i e r m a n a g e m e n t a n d s u p p l y c h a i n Contracting policy and procedure Global Purchasing Meeting Abertis’ supplier policy is based on the principles of competition, long-term relationships, adequate planning, efficiency and control. Abertis has several control mechanisms in place with the purpose of assuring adequate compliance with these principles and their traceability in order to prevent certain risks. Said mechanisms combine committees and management tools that ensure that each and every contract is justified, that describe the implications resulting from not proceeding with them and that verify their profitability. The implemented supplier contracting process is electronic and includes a formal assessment and qualification process based on the risk levels associated with the supplier company. In the last quarter of the year the second annual global Purchasing management meeting took place, with the goal of sharing knowledge and practical experience in matters pertaining to suppliers, new improvement projects and collaboration among the different business units, proposing challenges and resolving doubts. Periodically, the Purchasing departments hold virtual meetings to follow-up on actions and projects presented in the different in-person sessions. HUMAN TEAM 135 H U M A N T E A M . | 8 9 C o m m i t t e d t o t a l e n t Committed to talent 8.9 Abertis strives to create a culture of respect, inclusion, collaboration, safety and health in the workplace. The vision of Human Resources is to foster a positive environment where people can share the Group’s values and leverage its capabilities – experience, knowledge and skills – in order to reach excellence with which to contribute to the consolidation of Abertis as a reference company in the industry. Almost 40% 15% 86% of the workforce are women of executive directors are women of executives directors come from the local community Strategic objectives Guarantee the safety and health of people at the workplace Promote a team that is satisfied, committed and aligned with our goals and values Guarantee equal opportunities Boost the quality of employment Attract, develop and retain professional talent within a multicultural context. 136 Equivalent average workforce by country Diversity and equality t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 3% 2% 4% 11% 12% 15,077 38% 13% 17% Brazil France Argentina Spain Chile Emovis Rest Italiy The Group’s average workforce in 2016 was 15,077 people, which has remained practically unchanged with respect to 2015 (-1%). Brazil, France, Spain and Argentina accounted for 80% of the total. Workforce Total workforce as of December 31 Permanent contract Full-time Turnover Men Women Total 60.7% 96.1% 93.7% 13.6% 39.3% 92.4% 83.4% 15.8% 14,943 94.6% 89.7% 14.5% * The scope of the data is specified in Chapter 10 Report Methodology. Abertis commits to achieve a fair and inclusive work environment where the contribution of each employee is valued. The Group promotes diversity through hiring, internal promotion and, training and development programs. All countries where the company operates have legislation on equal opportunities between men and women. The Group’s objective is to ensure non-discrimination and equal opportunities in all undertakings, as established in the Code of Ethics and other related plans and procedures. Group-wide, 39.3% of the workforce are women, a percentage that has remained the same when compared to the previous year, although the number of women in executive roles and leadership positions has increased following the growing trend toward gender balance in the workforce. Although this percentage varies depending on professional categories and countries, the upward trend is pervasive in practically all countries. Percentage of women in the workforce Executive directors Managers 15.3% (+10.2%) 26.6% (+12%) Other 40.4% (=) Promotion of female technical vocation (Science, Technology, Engineering and Mathematics) with the goal of boosting technical vocations among girls. Thirty 9 to 12-year old girls participated in the event. Equality plan. . Hispasat held a STEM technical workshop Autopistas has formalized and approved the equality plan for all its concessionnaires in Spain. 137 H U M A N T E A M . | 8 9 C o m m i t t e d t o t a l e n t 138 Integration of persons with functional diversity Abertis Open Culture t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Brazil, France and Spain have specific legislation that requires hiring a minimum number of persons with different types and degrees of functional diversity. It is possible to reach the quota however through the use of alternative measures, such as contracting goods and services from Special Employement Centers or giving donations to organizations that seek job integration as the ultimate goal. Likewise, Abertis Infrastructures holds the Bequal seal, which is linked to the diversity management model of the Seeliger and Conde Foundation. Group-wide, the average workforce consisting of persons with functional diversity amounted to 309, most of which are located in France (almost half of the total) and Brazil. Average workforce consisting of persons with functional diversity Abertis founds its corporate business culture on the basis of collective building, by summing the intelligence from across the entire team. The company has consolidated the so-called “Open Culture” through several programs: Open Circles: Participative sessions aimed at connecting with the Corporation’s vision. Come in!: Brief presentations to gain direct and transparent access to knowledge about the organization’s relevant topics and projects. Open Challenges: Participative and voluntary projects. 139 H U M A N T E A M . | 8 9 C o m m i t t e d t o t a l e n t 2% 15% 37% 309 46% Brazil France Spain Chile Figures: 5 Open Challenge projects (Innovation, Communication, Bottom-up, Continuous Improvement, Welcome & Integration, Social Learning). 45 people are currently participating in the Open Challenges 140 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Professional development One of the main goals of Abertis’ Human Resources policy is ensuring that its professional staff has the adequate motivation, experience, competencies, knowledge and values necessary to contribute to the Group’s growth. 8.10 Almost 80% of executive directors positions have been filled via internal promotion since 2010 Succession Plan: Abertis is working on the design of a Succession Plan that is expected to be implemented in 2017 both within the Corporation and in the business units, and which will contribute to the identification of the successors to all critical positions at the company. The final goal of this plan is to provide a global and crosscutting vision in order to leverage the organization’s talent at a maximum. Development Program: In 2016 the Group has worked on a development program for key employees and specific training has been deployed in the field of cultural competencies, as a result of the greater international and cultural diversity of Group employees. In the sphere of efficiency, a set of minimum recommended Human Resources processes and practices standards have been established for all business in the company. This way, the goal is for all business units at the Group to have their own “Development” Plan to implement in the coming months. 23 E Q U I P O H U M A N O . | 7 1 0 D e s a r r o l l o p r o f e s i o n a l Talent promotion The promotion and retention of talent are the main elements that make up Abertis’ professional development policy. For this purpose, betting on Abertis’ own source of talent is a fundamental pillar of our people management policy. One of the Group’s strategic objectives is ensuring that at least 75% of executive and manager role vacancies are filled with internal candidates. Proof of this is the importance the company gives to people development initiatives, such as the “Abantis program”, which is conceived for the executive development of high-potential employees within the Group, and the “Talent Development Program”. Both programs have been implemented in collaboration with the leading business schools. Almost 80% of new executive positions since 2010 have been filled with internally promoted employees. In addition, over 40% of employees who have gone through internal talent development programs currently hold executive positions in the Group. The Group has established a Management by Objectives system for the promotion of talent. At present, 100% of executive roles, 100% of managers positions and 47.8% of the rest work under this performance appraisal system. 142 New ideas creation t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Responsible innovation: An initiative by Sanef for stimulating internal innovation and for valuing and rewarding those with the best ideas. With 4 categories involved – service quality, safety, sustainable development, business life 3.0 – almost 130 ideas were received, which were evaluated by an external and independent jury. The five winning teams had the opportunity to travel to Barcelona and visit Abertis Group’s new offices. Imagine Project: In Spain, Autopistas took part in the 1st edition of the Imagine IoT, a creativity program that identifies business and social problems and proposes disruptive solutions from the realm of Internet of Things. The challenge facing Autopistas was to succeed in transmitting to employees, clients and the overall society its efforts to ensuring road safety on toll roads. Collective Intelligence The goal of Abertis’ Open culture is the definitive evolution from a culture based on the individual leader towards collective intelligence, something that was announced in 2016 as the “Cultural change that goes from I to WE”. In order to favor the efficient use of this collective intelligence, Abertis has created the Connectis knowledge network, a space that enables those involved in the different operational phases to share knowledge and work collaboratively to implement continuous improvement processes across the entire Group. Involved in this process are the toll roads in Brazil, France, Spain, Chile, Argentina and Puerto Rico and, specifically, the civil works, operations, technology, information systems and purchasing areas. 143 H U M A N T E A M . | 8 1 0 P r o f e s s i o n a l d e v e l o p m e n t The initiatives identified in Connectis become projects that are jointly implemented by the different activities and countries, allowing teams to share good practices and challenges encountered, taking a broader perspective that enriches all of the stages of the project. Work climate The Group conducts periodic work climate surveys with the purpose of measuring team satisfaction and of developing action plans that are geared at improving the collaborators wellbeing. In 2016, work climate surveys have been conducted at the company’s headquarters as well as in concessionaires in Brazil, France and Puerto Rico (Metropistas). Hispasat has published the results of the 2015 work climate survey and new improvement measures have been launched. best company to work for” in the 3,000-7,000 In Brazil, Arteris received the award as the “4 collaborators category, in the Valor Carreira As Melhores da Gestão de Pessoas 2016 ranking. Surveys were collected from 761 collaborators in order to measure the level of commitment of the Group’semployees. th Training Training plans are another one of the pillars for development and professional promotion and their application is aligned with the achievement of the company’s strategic objectives. Investments in training initiatives have been constant through 2016, totalling 3.4 million euros. Abertis’ goal in this area is that in the coming years each collaborator of the Group will undergo a minimum of one development initiative per year. 144 Total investment (Mn€) in training and average employee training hours t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 4.0 3.0 2.0 1.0 0.0 22.5 17.7 14.8 3.0 3.3 3.4 Investment in Training Average training hours 24.0 21.0 18.0 15.0 12.0 9.0 6.0 3.0 0.0 Corporate volunteering Abertis, consistent with its CSR and Human Resources Plan wishes to boost and support volunteering activities through the creation of the Altruis Volunteering Program from Abertis Infrastructures and the Abertis Foundation, through which its professionals can spontaneously donate part of their time, skills, knowledge and economic support in the interest of improving society. This implies the execution of a number of activities that are of general interest and that cater to criteria of assistance, social services, civic, education, culture, scientific, sports, health, cooperation for development, environment, the defense of social economy or research oriented toward such purpose, development of associative life, promotion of voluntary work or any other of a similar nature at the domestic level. Other companies that are part of the Abertis Group also develop corporate volunteering programs. Health and Safety Trend of work-related accidents 146 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 In 2016 work-related accidents have been significantly reduced, with drops across the main indicators. This is the result of on-going work to prevent risks and the actions implemented across all of the Group’s concession holders. 8.11 -18% work-related accidents in 2016 Over 146,600 hours of training in occupational health and safety (+9.5%) Overall, 425 direct work-related accidents have occurred, which is 18.4% lower than 2015. Therefore, the 2016 occupational incidence rate was 28.6, 19% lower than in 2015. In turn, the frequency rate was 14.8, 13% lower than in the previous year. The severity rate has also been reduced by 10% (0.5) during the year. France and Chile lead the drops with reductions in their accident frequency rate of 20% and 33% respectively. 147 H U M A N T E A M O . | 8 1 1 H e a l t h a n d S a f e t y Total Men Women Management System The health and safety management systems involve the risk level analysis of the different job positions and the corresponding definitions and application of safety and training actions as well as the supply of specific safety equipment according to the identified risks. Likewise, worth highlighting is the coordination of safety activities with supplier companies, which implies the presence of collaborators who perform their tasks at the company’s own worksites or spaces. Eighty-six percent of the revenue has implemented a Health and Safety Management System. Implemented - OHSAS Implemented - In-house Certified - OHSAS No formal system * The incidence rate relates to the number of accidents per 1,000 employees. The frequency index relates to the number of accidents per each million of worked hours. The severity rate relates to the number of working days lost per 1,000 worked days. 148 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Risk prevention Main actions implemented More training hours imparted. (+9.5%) Evacuation drills : During 2016 146,679 training hours in Health & Safety have been : As a novelty in Argentina, concession holder GCO has conducted for the first time in the company 4 evacuation drills in the main buildings, which has enabled the company to collect information about our collaborator’s situation at the worksite in terms of putting theoretical knowledge to practice. The results were very positive in all buildings. Improved worker safety : In Spain, Autopistas has improved its road cone placement procedure through the standardization of the systematic being applied and by providing adapted and unified vehicles for all networks based on the volume of the required road signaling works. Other actions : Specific control audits and follow-up actions Psycho-social assessments Continuous improvement procedures Awareness campaigns and workshops. Safety awareness campaign As in recent years, Sanef has conducted a driver awareness campaign to double safety in areas where workers are carrying out their functions. With the question: “Our agents remain vigilant for you. How about you?”, the campaign values the job of these agents, who are defined as guardian angels. This campaign took place between the months of February and June, with lit information panels and announcements in Sanef’s radio. The message was broadcasted in French, English and German in order to reach broader audiences. In France, the accident frequency rate in 2016 dropped by 20%. In Chile, the company has adhered to the Safety Campaign driven by the Chilean Chamber of Construction (CChC) that seeks to advance toward a “Zero Fatalities” goal in construction work, and appeals to the commitment of leaders, companies and workers. In Chile, the accident frequency rate dropped 33% in 2016. 149 H U M A N T E A M O . | 8 1 1 H e a l t h a n d S a f e t y 2017 Outlook 9.1 Strategic plan: commitment and delivery 9.2 CSR Master Plan 9.3 2017 guidelines 9152 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Strategic plan: commitment and delivery Growth 9.1 The company will continue to focus its energy on growth, a strategic priority, which will take place either through new acquisitions or through an extension to its existing concessions in exchange for new investments or tariffs increases. New acquisitions The latest acquisitions unfold a new range of possibilities for the Group: Italy, where the Group seeks to increase its presence through new acquisition opportunities. Driving its operational leadership via the launching of the free-flow tolling system at the Mersey Gateway Bridge, one of the most important projects in the United Kingdom’s National Infrastructures Plan and one of the 100 largest projects of the industry in the world according to KPMG. Organic growth Through new agreements with concession grantors. In France, an agreement has been reached in January 2017 with the French Government for the investment of 147 million euros in its network, which adds to the execution of the works already planned in the Plan Relance . In Chile, several agreements for the modernization of roads reached with the Ministry of Public Works are expected to materialize. The Group will invest in several of its concessions with the goal of digitizing payment systems and increasing their capacity, in order to find solutions for addressing traffic congestion. Such is the case of Rutas del Pacífico, Autopista Los Libertadores or Autopista Central. In Brazil new investments in existing concessions are being analyzed, which could be offset through tariffs increases. Among the negotiations involving construction work improvements, the new third lanes in Autopistas Fluminense, Fernão Dias or Litoral Sul stand out, in addition to a new beltway in Itaborai (Rio de Janeiro). 153 . 9 1 S t r a t e g i c p l a n : c o m m i t m e n t a n d d e l i v e r y India – transaction closed in 2017 – offers an enormous potential as a first step to understand and grow in the Asian continent. Hispasat The Group will continue to analyze opportunities in its traditional markets such as Europe and America. Growth through new projects will constitute another objective of Emovis, Abertis’ technology and services branch, which will focus on: Searching for new opportunities in Europe and Latin America. Strengthening its presence in North America, Canada, Puerto Rico and Chile. 2017 will be an important year for growth in Hispasat’s fleet with the launching of 3 new satellites: Hispasat 36W-1 (successfully launched on January 28 will add to the group’s fleet of satellites in order to increase the telephone, audiovisual, corporate network or broadband Internet services, among other telecommunications solutions. The three satellites will provide coverage in America and will feature the Ka band, the company’s bet for the Latin American market. , 2017), Amazonas 5 and Hispasat 30W-6, which th 154 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Investments CSR Master Plan Abertis will continue to work on investments in Brazil, Spain, France or Italy, which will allow driving the modernization of Abertis’ toll roads network with the goal of improving road safety, traffic flow and road service and sustainability, while giving a new impulse to the economic activity and the competitiveness of businesses in the territory. Efficiencies In 2017, the Group will continue to move forward with the efforts made in the last years, not only at the Abertis Corporation but also across the different business units, with outstanding examples in France, Autopistas, Brazil or Hispasat, with the purpose of fulfilling the objectives of the 2015-2017 Strategic Plan. Shareholder retribution The company upholds its commitment to offer a 10% growth in shareholder remuneration for the year 2017. In the sphere of corporate social responsibility, in 2017 Abertis will deploy several action plans related to the CSR Master Plan. The different countries will deploy their own action plans to achieve the objectives related to governance, ecoefficiency, quality safety, and the relationship with society, which will allow identifying new opportunities for innovation and process improvement as well as new activities and services. 9.2 The efforts aimed at increasing the spreading of non-financial information to the entire organization will continue, including new additions in a progressive fashion. In addition, KPIs linked to the strategic objectives of the Master Plan will be subjected to specific monitoring. The materiality assessment will require updating. Similarly, the participation of the different stakeholder groups must be encouraged, so as to continue to contribute to the identification of risks and opportunities related to economic, environmental and social aspects. 155 . 9 1 S t r a t e g i c p l a n : c o m m i t m e n t a n d d e l i v e r y | 9 2 C S R M a s t e r P l a n . 157 . 9 3 2 0 1 7 g u d e l i n e s i 156 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 2017 guidelines 9.3 France Continue with investments in Plan Relance Investments Plan Relance II (147 million euros) Debt management Opteam efficiency program Italy Consolidation of A4 Holding in the Group Acquisition of minority stakes Investment plan: 2,000 million Puerto Rico Negotiation for new extension to the concession New investments in Road Tech: 6 new gates Argentina Negotiation with the Government to reach equilibrium in concessions: increase tariffs and extensions India Integration of new assets and consolidation of Group accounts Knowledge and analysis of the Asian market United Kingdom Analysis and rehabilitation plan of bridge structures (RMG) Spain Investments in the Unicat agreement: C-32 Blanes-Lloret section FOCUS cultural change program: new brand, operations, processes, efficiencies… Colombia Completion of 600 million investment plan (2010-2017) Completion schedule of some concessions Brazil Investment plan progress: Florianópolis beltways and Serra do Cafézal works Refinancing of short-term debt Inorganic and organic growth through new PIL opportunities Emovis Growth through new contracts; new boost to commercial network in the U.S. Launch of new projects: A25 (Canada) and Mersey Bridge (United Kingdom) Free-flow excellence in Dartford Crossing and other projects Other products: progress in inter-operability programs Chile Drive “Stop & Go” electronic payments in some roads Hispasat Organic growth with the launching and putting into orbit of 3 new satellites Growth: new opportunities (Orbital Sur tender) Negotiations for new investments in exchange of extensions Focus on innovation: model, product, services… Adaptation to a sector that is undergoing a complex transformation process About the report 10.1 Methodology 10161 . 1 0 1 M e t h o d o o g y l 160 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 Methodology 10.1 This report integrates the Annual Report and the Corporate Social Responsibility Brief and is supplemented by other documents published by Abertis, among which are the 2016 Annual Accounts and the Management Report (audited by Deloitte), the 2016 Corporate Governance Annual Report and the follow-up annex to the CSR Master Plan. Methodology This report meets all of the requisites established in the international framework for the preparation of integrated reports, and will be published annually. The first fiscal year is 2016. The report has been prepared according to the standards of the Global Reporting Initiative (GRI): Comprehensive Option. This implies applying the standards in full, from the definition principles and quality content to the use of indicators and standard calculation methodologies. As an organization that adheres to the United Nations Global Compact, this annual report meets the requisites for the preparation of progress reports established in the program of the United Nations. The international reference in matters pertaining to stakeholders consists of the principles of accountability (AA1000APS – 2008), the assurance standard of non-financial information (AA1000AS 2008) and the standard for stakeholder engagement (AA1000SES 2015), all of which have been included in the preparation of this report. The Carbon Disclosure Project related to climate change together with external assessments as those linked to the Dow Jones Sustainability indexes has an indirect impact on the type and publication format of the information that is included. The company’s Board of Directors and CSR Committee are the bodies responsible for the validation and publication of the information contained in the Annual Report and its annexes. Likewise, the financial and non-financial information have been audited and externally reviewed respectively, as per the attached review report. Scope of the information The scope of the financial information of this report includes all of the activities of the company and the scope of the non-financial information includes 94% of the total business revenue and 93.5% st of the equivalent average workforce on December 31 , and comprises the companies listed next. This responds to the inclusion criteria in the scope of the follow-up and monitoring of non-financial information of subsidiaries in which the company has management and control capabilities. Companies included in the scope of non-financial information: Brazil: Arteris, Autovias, Centrovias, Intervias, Vianorte, Planalto Sul, Fluminense, Fernão Dias, Régis Bittencourt, Litoral Sul, Latina Manutenção de Rodovias, Latina Sinalização de Rodovias. France: Sanf, Sapn, Eurotoll, SEA14, Bip&go, SEBPNL SAS. Spain: Autopistas, Red AP7/AP2 Acesa, Red Gencat, Red AP7 Aumar, Red AP68 Ebro, Red Centro Sur. Chile: Autopistas Chile, Autopista Central, Autopista Los Libertadores, Autopista del Sol, Autopista Los Andes, Elqui, Rutas and linked operators Infraestructura 2000, Operadora Sol, Operadora Los Libertadores, Operadora Andes, Operadora del Pacífico, GESA. Argentina: Ausol, Autopista del Oeste and linked operator: GCO. Puerto Rico: Metropistas, APR. Telecommunications: Hispasat, Hispamar. Central services: Abertis Infraestructuras, Fundación Abertis. 162 t r o p e R l a u n n A d e t a r g e t n I 6 1 0 2 The remaining 6% comprise the following companies: Direct shareholding: Abertis Infraestructuras Finance B.V, Abertis Motorways UK Ltd, Infraestructuras Americana SLU, Emovis SAS, Abertis USA Corp, Abertis USA Holding LLC, Abertis PDC, S.A., Abertis Internacional and Abertis Overseas UK Limited, ACDL and TBI Overseas Holdings Inc. Indirect shareholding: Túnels de Barcelona i Cadí Concesionaria de la Generalitat de Cataluña, S.A., Sanef Concession, Sanef Aquitaine, Eurotoll Central Europe zrt and Leonord Exploitation SAS. 23 . l 9 1 M e t o d o o g í a d e e l a b o r a c i ó n Access the full report at abertis.com/annualreport2016 

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