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
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Letter from
the Chairman
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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.
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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.
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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
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Letter from the
Vice-Chairman
and Chief
Executive Officer
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Letter from the Vice-Chairman
and Chief Executive Officer
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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.
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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.
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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
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Abertis
at a glance
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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
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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
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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
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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.
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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.
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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.
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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
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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.
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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
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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.
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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.
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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
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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
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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%)
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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%)
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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%)
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La Serena
Ovalle
Quilota
Los Andes
Santiago de Chile
Viña de Mar
San Antonio
Piovene
Rocchette
Brescia
Pádua
Badia
Polesine
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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%)
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Arecibo
San Juan
Barceloneta
Vega Alta
Toll Roads
in Puerto Rico
San Isidro
Luján
San Fernando
Buenos Aires
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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%)
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Hyderabad
Jadcherla
Trichy
Ulundurpet
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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
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: Coviandes | Autopista Bogotá-Villavicencio
272
kilometers
collaborators
(100% Coviandes)
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Dublín
Toll Roads
in Ireland
Ireland
Control
: Emovis
M-50 (Dublin) – Free-flow operations
120,000
vehicles/day
86
collaborators
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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)
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Nueva York
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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
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Split
Croatia
Control
: Emovis
Research and Development Center
38
collaborators
47
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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.
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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
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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)
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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.
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2
0
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6
M
i
l
e
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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.
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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).
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w
a
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a
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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
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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.
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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
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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
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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.
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S
t
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u
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|
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
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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.
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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
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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
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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.
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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
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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
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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
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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.
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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
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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
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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.
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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
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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.
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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)
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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.
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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.
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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).
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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
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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
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Figures and results
Strategic objectives
8.1
Grow in new concessions profitably by applying financial discipline
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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%
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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.
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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%
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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%
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Ebitda
Financial result
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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.
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Cash flow
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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
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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
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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
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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
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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.
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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
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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
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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%
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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
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Dividend
Bonus share issue
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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
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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
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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.
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2016 tax contribution (millions of euros)
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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).
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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
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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
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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.
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Equivalent average workforce by country
Diversity and equality
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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.
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Integration of persons with functional diversity
Abertis Open Culture
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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.
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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
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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.
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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.
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New ideas creation
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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.
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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.
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Total investment (Mn€) in training and average employee training hours
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4.0
3.0
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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
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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.
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-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.
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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.
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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.
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Outlook
9.1
Strategic plan:
commitment and delivery
9.2
CSR Master Plan
9.3
2017 guidelines
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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).
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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
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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.
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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
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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.
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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.
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Access the full report at abertis.com/annualreport2016