STRATEGY

Abertis is the global leader in toll road management with over 8,600 kilometers managed and a presence in 15 countries in Europe, America and Asia.
Abertis is the leading international road infrastructure management group by kilometers managed, with 8,648 kilometers of high capacity and quality roads and presence in 15 countries in Europe, America and Asia.

Abertis is the leading national road operator in countries such as Spain, Chile, and Brazil, and has an important presence in France, Italy and Puerto Rico. The company has stakes in the management of more than 650 kilometers indirectly managed.

Thanks to the internationalization strategy developed by the Group in recent years, today more than 70% of Abertis’ revenues come from outside Spain, with significant contributions from France, Brazil and Chile.

Abertis’ top priority is driver safety. The company invests continuously in smart technology and engineering to ensure that its customers experience a safe, comfortable, fast and easy journey when they choose to travel on the Group’s toll roads.

Fueled by its commitment to research and innovation, Abertis combines advances in high capacity infrastructures with new technologies to drive innovative solutions to meet the challenges of the future of mobility.

Abertis is listed on the Spanish Stock Exchange and is part of the selective Ibex 35, as well as of international indices FTSEurofirst 300 and Standard & Poor’s Europe 350.

Abertis’ vision is to be the world’s leading operator in infrastructure management at the service of mobility and communications. Our mission: to promote and manage toll roads in a sustainable and efficient way, contributing to the development of the infrastructures of society in harmony with the well-being of our employees, and to create long-term value for our shareholders.

At Abertis we operate with integrity guided by our values:

• Managing with responsibility and trust on people.
• Finding solutions for the development of infrastructures through dialogue and collaboration with our stakeholders.
• Staying ahead and adapting to the needs of our clients and users through innovation and continuous improvement.
• Driving efficiency in our organization based on simplicity and pragmatism.
• Being transparent to assess our rigor and credibility.

BASIS FOR VALUE CREATION

• Be the reference company in the industry. Nobody is better placed than Abertis to set the pace on quality and innovation.

• Our long-term commitment and the high quality of our services make us a great partner for the Administrations.

• Continuous investment in technology and smart engineering, which allows us to maintain maximum levels of service in our toll road networks day after day, guaranteeing clients a fast, comfortable, easy and safe journey

• By combining financial strength and industrial experience: we have a strong financing capacity in world markets and have the best know-how in the industry

• By being part of the solution to problems associated with the increase of world traffic, such as congestion and climate change.

INDUSTRIAL VISION

ENGINEERING

Our team of engineers is committed to keeping the highest levels of service, quality and technology in our toll roads; to guarantee their optimized maintenance in order to contribute to extending their lifecycle; and to control construction risks in all expansion and renovation projects in order to ensure compliance with planned schedules.

TECHNOLOGY

Abertis’ experts promote the use of innovative solutions geared at increasing efficiency, safety and quality of service. All of the above with the goal of ensuring 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.

INDUSTRY OPPORTUNITIES AND CHALLENGES

The toll road management industry offers several opportunities and poses a number of challenges of different nature that will have an impact on the future business prospects in the coming years.

OPPORTUNITIES

MOBILITY AS A SERVICE

Big data and the collaborative economy are driving mobility as a service, a new transport paradigm centered on the user. This new way of understanding mobility establishes a closer link between supply and demand, in which users seek the greatest efficiency in their travel decisions.

DIGITIZATION AND CONNECTIVITY

Road infrastructure should incorporate new digital components such as wireless networking technologies, digitization, the Internet of Things and artificial intelligence, which will be vital for better managing the new generation of autonomous and connected vehicles.

NEW PAYMENT SYSTEMS

The demand for free-flow tolling systems is growing due to the advantages they bring through both the reduction in travel times and carbon emissions and the ease of payment. The toll road management industry offers several opportunities and poses a number of challenges of different nature that will have an impact on the future business prospects in the coming years.

ROAD INFRASTRUCTURE DEFICIT

Globally, the estimated infrastructure deficit is set in trillions of dollars, corresponding a significant part to road transport infrastructure. In the coming years, plenty of opportunities will arise both in new roads designing in developing markets such as India or Latin America, and in the upgrading of existing ones in mature markets such as Europe and the United States.

GENERATING FINANCIAL RESOURCES

There are multiple road transportation costs, including construction, maintenance, congestion and pollution. At a time when investment in infrastructure is paramount as a driver for economic growth, the private sector can contribute to the much-needed 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.

CHALLENGES

TRAFFIC GROWTH MANAGEMENT

The increase in traffic (it is estimated that the number of vehicles in the world will grow 4 times by 2050) will pose important challenges such as pollution, congestion and other externalities on road safety and public health, imposting new ways of traffic management that seek a more sustainable, efficient and safe mobility.

EVOLUTION OF THE ECONOMIC SITUATION

The uncertainty in the evolution of macroeconomic data and the collapse of prices of raw material along with other elements such as stalling investments and weak improvement of the productivity can contribute to discouraging consumption and road transportation.

INCREASING COMPETITION

In recent years, a number of new international players with interest in assets such as toll roads have appeared in the market. 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 in infrastructure assets due to their attractive profitability.

REGULATIONS AND LEGAL SECURITY

The majority of the Group’s businesses are in the form of concessions, and thus, limited in time, based on agreements with governments, and carrying the duty to guarantee the concessional obligations and the investment commitments. The legal security that protects bilateral contracts is a cornerstone of the industry.

ADAPTING TO SOCIETY’S NEW EXPECTATIONS

Toll road clients and other stakeholders have new expectations that are related to services, customer care, new technologies, transparency and flexibility, among others.

STRATEGIC PLAN

In 2017 Abertis has invested over €3,600 Mn in growth transactions.

GROWTH DEALS IN 2017

GROWTH IN THE EXISTING ASSET BASE

In 2017 Abertis gained control of 100% of the Holding d’Infraestructures de Transport (HIT) holding, a company controlling 100% of Sanef, after successive acquisitions of capital from the rest of the minority shareholders. Abertis has invested more than 2,200 million euros throughout the year in this process, which strengthens the Group’s presence in its biggest market.

Abertis has also increased its stake in A4 Holding, its Italian subsidiary. The Group has closed agreements to acquire several minority interests until reaching close to 90% of the capital of the A4 and A31 toll roads concessionaire, which has been already completed in January 2018.

The Group has also strengthened its position in Brazil. In October, Arteris - a subsidiary of Abertis - signed the concession contract for Via Paulista in São Paulo. The concession was awarded by the State of São Paulo in April for a period of 30 years.

It is a concession totalling 720 kilometers, which includes 317 kilometers managed by Autovias (belonging to the Arteris Group) and other additional 401 kilometers, which, up to the time of the bidding process, were under direct management by the State of São Paulo.

With these operations, Abertis has achieved a greater balance of its global portfolio by growing in economies with stable concessional frameworks and a clear commitment to public-private partnerships in the toll road sector.

NEW ACQUISITIONS

In March, Abertis closed the 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 133 million euros.

After this deal, Abertis controls 100% of concessionaire Trichy Tollway Private Limited (TTPL), which manages the NH-45 toll road (State of Tamil Nadu), and 74% of Jadcherla Expressways Private Limited (JEPL), which holds the concession of the NH-44 toll road (State of Talangana). These two toll roads are located in regions that are experiencing an economic growth that is above the average of the whole of India and both have GDP levels that are among the highest in the country.

This transaction, which represents the Group’s entry into the Asian market, is an important step in Abertis’ commitment to geographical diversification, with presence in an expanding continent and in one of the countries with the highest potential growth in the world, reinforcing the Group’s leadership and balancing its global exposure to different markets.

PRIVATE-PUBLIC PARTNERSHIP AGREEMENTS

In January, Abertis’ French subsidiary Sanef reached an agreement with the French Government for the implementation of a new investment plan for the upgrade of its network. Under the agreement, Sanef will invest 147 million euros in various projects in exchange for a rate increase of between 0.27% (Sanef) and 0.40% (Sapn) per year from 2019 to 2021.

This new plan will improve the French road network around four basic objectives: road safety, traffic flow, quality of service and environmental sustainability, while giving a new boost to the French economy through large-scale work aimed at promoting the activity and employment of the country’s businesses network.

In August, Ausol, a subsidiary of the Abertis Group in Argentina, agreed with the Ministry of Transportation on new investments in its toll road network. This agreement contemplates an additional investment plan to improve the current road network for a total of US$430 million, which will be fully financed with future revenues of the concession thanks to the extension of the current contract, set to end in 2020, until the end of 2030.

Two months earlier, in mid-June of this year, the Group had reached a similar agreement with the Argentine Government regarding its other concessionaire in the country, Grupo Concesionario del Oeste S.A. (GCO), which also contemplates an investment plan of US$250 million and an extension of the concession term until the year 2030.

Abertis thus reinforces its commitment to public-private partnerships with the goal of achieving solutions aimed at creating future value for the territories through agreements with governments for new investments in exchange for extensions of the term of concessions or through rate increases.

In this sense, the Group has reached important agreements in the majority of countries where it operates, including Argentina, France, Italy, Brazil, Chile and Puerto Rico. In addition, the operation shows the Group’s ability to grow its portfolio of existing assets, by increasing the average term of its concessions.

CONTINUOUS SEARCH FOR NEW OPPORTUNITIES

In 2017, the Abertis Business Development area analyzed more than 40 projects in 18 countries, of which seven projects have been successfully completed, enabling Abertis to consolidate its presence in countries where it already conducts business (France, Brazil, Italy and Argentina) and to gain access to new countries with high potential in the field of road concessions (India).

Without prejudice of the passivity duty due to the takeover offers on Abertis, the company keeps on working on a business-as-usual basis, and it is in a position to leverage all the opportunities that may arise.

Targeted markets
North America
Western Europe
Latin America
Australia
India

SHAREHOLDER REMUNERATION IN 2017

 
+10%
2017 shareholder remuneration
For more information, see the Shareholder Remuneration section in this report.
Delivering on the commitment established in the 2015-2017 Strategic Plan, the dividend per share has grown 10% in 2017.

With this policy of shareholder remuneration, Abertis will have distributed nearly 2,166 million euros in the 2015-2017 period in ordinary dividends alone.

2015-2017 STRATEGIC PLAN: COMMITMENT AND DELIVERY

DRIVERS FOR GROWTH

2015-2017 GROWTH TRANSACTIONS

INVESTMENT AGREEMENTS WITH GOVERNMENTS

FRANCE

Plan Relance I and II €750 Mn

PUERTO RICO

Extension of PR-22 and PR-5 €125 Mn

BRAZIL

Network upgrade €2,000 Mn

ITALY

North Connection project €1,500 Mn

CHILE

Autopista Central (under negotiation) and Autopista del Sol ∼€800 Mn

ARGENTINA

Upgrade of GCO and Ausol €565 Mn

More than €7,000 Mn invested in growth since 2015

FOCUS

A pure toll road operator

EFFICIENCIES

 
France, Brazil and Spain
New efficiency plans
Over €400 Mn of cumulative savings since 2015

INCREASED SHAREHOLDER REMUNERATION

 
+10%
Shareholder remuneration 2015-2017
Over €2,100 Mn in ordinary dividends

STRATEGIC PROGRAMS

The Group’s two strategic programs seek to respond to the main challenges of future mobility, such as road safety, congestion and pollution.

ROAD SAFETY

Abertis’ Road Safety program builds on more than 60 years of knowledge and experience in toll road construction and management with the highest international standards.
The Group invests in smart technology and engineering to ensure that its customers have the best experience when traveling on our roads.

Abertis applies advanced construction and management practices and collaborates with reference institutions and organizations worldwide. Looking ahead, Abertis conducts awareness-raising initiatives every year aimed at groups such as children and young people, and promotes university research.

ROAD TECH

Abertis is concerned about the mobility of the future. The company manages roads in an efficient and state-of-the-art way, innovating in technology and investing in smart engineering programs for a sustainable future.

Abertis’ Road Tech program promotes projects aimed at the new challenges of mobility, such as electric, connected or autonomous vehicles.

Abertis also leads innovation in the digitalization of road payment methods and promotes mobility solutions with the implementation of free-flow toll projects in many countries.
For more information about these strategic programs, see the Safe and Innovative Roads section in this report.

CSR MASTER PLAN

The Corporate Social Responsibility (CSR) policy and the materiality analysis constitute the basis for the definition of the CSR Master Plan.

MASTER PLAN

The Board of Directors’ CSR Committee is responsible for the follow-up and development of the CSR Master Plan, with the Corporation’s CSR Department acting as the global coordinator; and the different business departments involved in all the activities and countries, acting as the operating parties.

• In 2017 the 2016-2020 CSR Master Plan was deployed internationally, with the goal of building action plans available in each country, that would centralize and deploy all actions related to the achievement of the different objectives set in the Master Plan.

• Work was undertaken for the progressive inclusion of Italy, India and Emovis in the existing CSR formal management processes, the initial result of which is their direct participation in the ESG (Environment, Social and Good Governance) accountability exercise.

• Abertis’ CSR Department has conducted workshop sessions in Brazil, Chile and Argentina. The sessions have identified specific management and operational aspects that affect the deployment of actions related to the management of ESG impacts, as well as contextual facts that help explain and adapt the management approach of each of the aspects.

The development of the Road Tech and Road Safety strategic programs together with the deployment of the best corporate governance practices and the management of the rest of the environmental and social aspects through the CSR Master Plan centralize the management approach of the material ESG aspects in connection with the organization’s activities. The direct link with the Strategic Plan is formalized through the inclusion of shared monitoring indicators for both the Strategic Plan and the CSR Master Plan.
Data related to detailed performance by activity and country for each of the strategic objectives of the CSR Master Plan are detailed in the Annex linked to this report.

EXTERNAL EVALUATIONS

The frequency and significance of external evaluations of environmental, social and good governance matters have increased, as have their degree of systematization and procedure. This is partially due to the relevance and inclusion of the results in the decision-making process of the different stakeholders, including the investment and finance sector.

Participation in different evaluations has secured Abertis’ continued presence, in different reference indices, such as the STOXX, MSCI and FTSE4Good families of the ESG indices. On the other hand, CDP has evaluated the performance of the organization and ranked it under the B category. After several years of Abertis’ presence in the DJSI indices, the results obtained in the evaluation of 2017 have not allowed the company’s maintenance in them.

STRATEGIC PILLARS AND OBJECTIVES

The CSR Master Plan is based on Human Rights as a prevention and risk management principle spanning the entire plan. This consists of four pillars and 13 strategic objectives that are deployed into 38 quantitative common objectives spanning the entire organization (the details about these objectives can be consulted in the Annex to this report).

2016-2020 CSR MASTER PLAN FOLLOW-UP SUMMARY


STRATEGIC PILLAR
ASSESSMENT OF QUANTITATIVE GOALS FOLLOW-UP

Good governance, transparency and accountability
• The number of breaches of the code of ethics has increased in relation to the previous year, although the number of complaints has decreased.

• All claims have been addressed, with a positive trend with respect to compliance with the recommendations of the Code of Good Governance.

• Training in the code of ethics and prevention of corruption together with awareness-raising actions have continued to involve different stakeholders.

• The systematization of the supplier ESG evaluation is in the process of being implemented, although progress made in Brazil points to a significant increase in the tracking indicator in terms of the number of suppliers evaluated and approved according to CSR (applicable to the 4 pillars).

• We must continue with the deployment of actions for the inclusion of human right aspects in due diligence processes.

Ecoefficiency
• Scopes 1 and 2 CO2e emissions have increased by 15% in absolute values and have decreased by 13% in relative values in according to revenue in relation to the base year (2015). The calculation methodology for scope 3 has been refined and will be shared for extensive use by the rest of the countries and activities. Actions are being carried out to manage the emissions of the company’s own fleet of vehicles and vehicles transitting the toll roads. The assessment of energy management systematization to be conducted by the different activities and countries is pending.

• The usage percentage of electronic toll payment collection has exceeded 60% due to its extensive use in some countries. This objective will be reviewed next year in order to assess its modification.

• The development of products and services with positive ESG impacts is pending, which relate directly to the goal of favoring the use of less polluting vehicles and focusing further on construction waste management and related actions.

Integration with the community
• The number of projects and the volume of resources allocated to the relationships with the communities have remained constant, as has the volume of local purchases.

• All claims have been addressed and actions have been continued in terms of biodiversity enhancement. The identification of natural species is in the process of being systematized across the board, and the assessment of the services provided by ecosystems in relation to noise is still pending.

Safety and quality
• The number of road accidents has remained constant, although the number of fatalities has decreased in comparable terms. The increase in absolute terms results from the inclusion of India data. Accident and fatality rates have improved, although in the latter case India’s incidence on the global figure does not reflect this improvement.

• All claims have been addressed, and road safety campaigns and related education and research projects have continued.

• Workplace accidents have evolved positively, and the number of health and safety training hours and other skills/ competence training hours has also increased.

• The trend towards gender balance is maintained, and work must continue to achieve equal pay.

• The number of people with functional disabilities has increased through direct contracting.

Global
footprint

global leader in toll road management

Assets in
15
Countries
More than
8,600
Km under management
 
43
Concessions
 
15,099
Collaborators

Argentina

Control: Ausol, Grupo Concesionario del Oeste

2
Concessions
175
Kilometers
2,160
Collaborators
82,825
ADT (vehicles) -1.7%
17,041
Tn of CO2 (scopes 1 and 2) +8.6%

Brazil

Control: Arteris, Autovias, Centrovias, Intervias, Vianorte, Fernão Dias, Fluminense, Régis Bittencourt, Litoral Sul, Planalto Sul, Latina Manutençao

9
Concessions
3,250
Kilometers
5,375
Collaborators
44,063
Tn CO2 (scopes 1 and 2) +15.7%
18,255
ADT (vehicles) +3.2%

Canada

Control: Abertis Mobility Services
Golden Ears Bridge, Port Mann Bridge- Free-flow operation

36
Collaborators

Chile

Control: VíasChile, Autopista Central, Rutas del Elqui, Rutas del Pacífico, Autopista del Sol, Autopista Los Libertadores, Autopista de los Andes

6
Concessions
771
Kilometers
1,231
Collaborators
26,810
ADT (vehicles) +4.0%
17,041
Tn of CO2 (scopes 1 and 2) +8.6%

Colombia

Financial stake: Coviandes
Bogotá-Villavicencio Toll Road

86
Kilometers

Croatia

Control: Abertis Mobility Services
Research and Development Center

42
Collaborators

Spain

Control: Abertis Infraestructuras, Autopistas, Acesa, Aucat, Invicat, Aumar, Iberpistas, Castellana, Avasa, Túnels, Aulesa. Non-control: Autema, Accesos de Madrid, Henarsa, Ciralsa, Trados 45

14
Concessions
1,559
Kilometers (directly managed)
219
Kilometers (indirectly managed)
2,058
Collaborators
22,361
Tn of CO2 (scopes 1 and 2) -9.3%
20,876
ADT (vehicles) +3.9%

United States

Control: Abertis Mobility Services
Research and Development Center (New York)

43
Collaborators

France

Control: Sanef, Sapn, Abertis Mobility Services
Non-control: Alis, Aliénor, Léonord

4
Concessions
1,761
Kilometers (directly managed)
275
Kilometers (indirectly managed)
2,756
Collaborators
23,456
Tn of CO2 (scopes 1 and 2) +13.4%
24,836
ADT (vehicles) + 1.5%

India

Control: Trichy Tollway Private Limited, Jadcherla Expressways Private Limited

2
Concessions
152
Kilometers
53
Collaborators
19,613
ADT (vehicles) +9.6%
2,417
Tn of CO2 (scopes 1 and 2)

Ireland

Control: Abertis Mobility Services
M-50 (Dublin) – Free-flow operation

86
Collaborators

Italy

Control: A4 Holding

1
Concession
236
Kilometers
609
Collaborators
64,589
ADT (vehicles) +3.2%
1,903
Tn of CO2 (scopes 1 and 2)

United Kingdom

Control: Abertis Mobility Services
Dartford Crossing (London) and Mersey Gateway (Liverpool) - Free-flow operation
Financial stake: RMG. A1-M Alconbury-Peterborough. A419/417 Swindon-Gloucester

74
Kilometers
427
Collaborators

Puerto Rico

Control: Metropistas, Autopistas de Puerto Rico, Abertis Mobility Services

2
Concessions
90
Kilometers
80
Collaborators
64,645
ADT (vehicles) -2.9%
2,334
Tn of CO2 (scopes 1 and 2) -29.5%

Hungary

Control: Abertis Mobility Services
Operations office

10
Collaborators

ABERTIS MOBILITY SERVICES

 
8
Presence in: USA, Canada, Puerto Rico, United Kingdom, Ireland, Croatia, France, Hungary
 
341
Million transactions per year (Emovis)
 
3.8
Million electronic toll accounts (Emovis)
 
715
Collaborators
 
150,000
Devices (Eurotoll)
 
55,000
Km network (Eurotoll)

OTHER NON-CONSOLIDATED STAKES

HISPASAT
57%
Stake
CELLNEX
34%
Stake

AWARDS AND RECOGNITIONS

• The Legal 500 Spain awards the Abertis Corporate Legal Advisor Department, led by Marta Casas

• “Women and Traffic management” Award by the Spanish Association of Traffic Engineers and Mobility Experts, for Lourdes Roquet, Autopistas Operations Director

• Bronze Leon at the Cannes Creativity Festival for the Speed-o-track app by Arteris (Brazil)

• Valor Carreira Best People Management Award for Arteris (Brazil)

• 1st and 2nd place for Rutas del Pacífico and Autopista del Sol respectively, as the toll roads with the best reputation in the industry, by the Reputation Institute (Chile)

• Highest qualification (three stars) for the Autopistas’ Truck Parks, by the European Professional Association ESPORG (Spain)

• 4 COPSA Awards (in the CSR, Innovation and Road Safety categories) for ViasChile’ projects on social action, reintegration and accident prediction

• Centrovias, Autovias, Intervias, Vianorte and Litoral Sul, at the Top 20 by the Brazilian National Transport Confederation

• The Arteris’ Process Intelligencee Analytics Project, awarded by the KofaxInspire 2017

• Valor Compartido Award from Sustainability Hub to VíasChile for its project on the scouting and social rehabilitation of imprisoned women (Chile)

• Recognition to VíasChile from the Global Compact Global Network as one of the 5 best companies in the field of anti-corruption, with an emphasis on its voluntary adhesion to the Code of Good Tax Practices (Chile)