February 2015

A LEADING TECH COMPANY

This presentation has been produced by Indra for the sole purpose expressed therein. It should not in any event
be constructed as an offer or invitation to purchase shares of the Company.
Its content is purely for information purposes and the statement it contains may reflect certain forward-looking
statements, expectations and forecasts about the Company at the time of its elaboration. These expectations
and forecasts are not in themselves guarantees of future performance as they are subject to risks, uncertainties
and other important factors beyond the control of the Company that could result in final results materially
differing from those contained in these statements. The Company does not assume any obligation or liability in
connection with the accuracy if the mentioned estimations and is not obliged to update or revise them.
This disclaimer should be taken into consideration by all the individuals or entities to whom this documents is
targeted and by those who consider that they have to make decisions or issue opinions related to securities
issued by Indra.
A LEADING TECH COMPANY

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INDEX

Who we are
Brief look at 9M14
Outlook 2014
2013 Performance
A LEADING TECH COMPANY

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WHO WE ARE

INDRA: GLOBAL FOOTPRINT

A technology company providing real time, smart, efficient solutions and services
to clients all around the world

2.9bn

revenues in 2013

Local presence in

45

countries

65%
Services 35%

38,000

78

Projects in

Solutions

Excellence
Centers &
Software Labs

employees

138

countries

A LEADING TECH COMPANY

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WHO WE ARE

IN A BROAD RANGE OF VERTICALS

Transport & Traffic Security & Defense Energy & Industry

as % of
Sales

Key
Solutions

Services

21%

17%

17%

Public Administrations
Financial Services Telecom & Media
& Healthcare

17%

16%

12%

Air Traffic

Air Defense

Customer
Management

Taxes & Justice

Core Banking

Railways, Mass
Rapid Transit &
Buses

Border
Control

Network
Management
(Smart Grid)

Voting

Core insurance

Social Media

Intelligent Traffic
Systems &
Smart Mobility

Simulation

Plant
Management &
Energy Markets

ePayments

Digital Platforms

Application
Management

Healthcare

BPO

Networks &
Communications

IT Outsourcing

as % of
Solutions

A LEADING TECH COMPANY

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WHO WE ARE

AN INTERNATIONAL DIVERSIFIED COMPANY

Latam
Spain

28%
39%

13%
20%

Asia, Middle East & Africa

Europe & USA

>40% of total revenues in

emerging markets

>45% of workforce in
45 international subsidiaries

Figures as of 2013
A LEADING TECH COMPANY

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WHO WE ARE

CONSOLIDATING GLOBAL PRESENCE

68%

66%

64%

61%

61%
57%

Spanish revenues as % of total Indra

Revenues outside of Spain as % of total Indra

32%

2007

34%

2008

36%

2009

57%

43%

43%

39%

2010

39%

2011

2012

2013

17% CAGR since

beginning of the
crisis

Revenues outside of Spain

A LEADING TECH COMPANY

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WHO WE ARE

WITH STRONG GROWTH IN LATAM

Latam revenues growth since 2007

% of total Latam

Figures in M

Mexico
19%

831

Brazil
35%

Colombia
10%

4.2x

197
2007

2013

+22% growth in Latam

(local currency) in 2013

Others
19%

Chile
6%
Peru
6%
Argentina
5%

39% of total employees (~15,000)

located in Latam

A LEADING TECH COMPANY

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WHO WE ARE

WITH STRONG GROWTH IN AMEA AS WELL

AMEA revenues growth since 2007

% of total AMEA

Figures in M

Africa
28%

381
Asia
46%

4.4x

Middle East
26%

86
2007

2013

Revenue growth of 28% CAGR

since 2007

3% of total employees (~1,300)

located in AMEA

A LEADING TECH COMPANY

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WHO WE ARE

SPANISH REVENUES SUPPORTED BY THE CORPORATES

THROUGH THE CRISIS
7%

3%

7%

-3%

-3%

-10%

Corporate clients

-1%

-9%

-11%

-18%

-23%

-26%

2008

2009

2010

2011

2012

Spanish market growth rate

Public clients

2013

2013 vs 2007
1,468
-23%
1,125

Public

Corporates

Public Spain as %
of Indras Total Revenues

864

604

-50%

+15%

433

38%

692

62%

2007

2013

40%

15%
A LEADING TECH COMPANY

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WHO WE ARE

BUILDING NEARSHORE AND OFFSHORE PRODUCTION AND

DELIVERY CAPABILITIES
Latam
Spain

Nearshore
Factories

39%

A significant part
dedicated to
export business

Local presence in
14 countries

54%

Personnel breakdown

3%
4%

Asia, Middle East & Africa

Europe & North America

>38,000 professionals running

the business with overall utilization capacity
of 94%

c.4,000 subcontractors
providing operational
flexibility worldwide

A LEADING TECH COMPANY

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WHO WE ARE

SOLUTIONS AND SERVICES CARRY OUT DIFFERENT

CONTRIBUTION MARGINS

7.2%
16.6%

15.0%
11.9%
7.8%

Solutions

Services

Total

Overheads &
Others

Indra EBIT
Margin 2013
(recurrent)

Contribution Margin
2013 Figures

A LEADING TECH COMPANY

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WHO WE ARE

FOCUSED INVESTMENTS TO TAKE ADVANTAGE OF THE DEMAND

FOR SOLUTIONS
Main areas of
investment

Net Intangible (R&D)

CAPEX evolution (1)
80

10,0%

69

9,0%

70

Smart Grid & Customer Management

Solutions for Utilities

8,0%

60

51

53

51

50

7,0%

47
6,0%

40

38

5,0%

Surveillance

Healthcare

4,0%

30

2.0%

2.1%

2.6%
3,0%

1.7%

20

1.6%

1.6%

2,0%

10

1,0%

Core Banking & Insurance Systems

0,0%

2008

2009

2010

2011

2012

Net Intangible Capex (M)

Net Intangible Capex / Sales

2013

Railway Solutions

Airlines Revenue
Accounting

(1) Intangible Capex net of subsidies (M)

A LEADING TECH COMPANY

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WHO WE ARE

DIVIDEND TRACK RECORD

1,2

55%

55%

55%

55%

0.35

2.3%

3.7%

0.43

0.61

0.50

48%

42%

4.0%

0.66

60%

6.9%

3.4%

2.7%

0,4

Dividends
0,2
paid on

62%

5.3%

0,8
0,6

59%

0.68

50%
40%

2.8%

30%
20%

0.68
0.34

10%

0.34

0%

2007

2008

2009

Ordinary Dividend

2010

2011

Extraordinary Dividend

2012

2013

Pay-Out

2014
Dividend Yield

Dividend accommodated to free cash flow

generation, setting a floor in 2013

Dividend yield calculated on Dec 31st of previous year; Pay-out calculated on previous FY results

A LEADING TECH COMPANY

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WHO WE ARE

SHAREHOLDERS (January 2015)

% as of Estatal de
Sociedad
Share
Capital
Participaciones
Industriales
S.E.P.I (*)

20.1%

Others

12.5%

53.5%

Corporacin
Financiera
Alba (*)

10.7%
3.2%

Fidelity Group

Telefnica, S.A.
(*) Board of Directors representation

CNMV data. Identified shareholders with a position in excess of 3%

A LEADING TECH COMPANY

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INDEX

Who we are
Brief look at 9M14
Outlook 2014
2013 Performance
A LEADING TECH COMPANY

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BRIEF LOOK AT 9M14

9M14 MAIN MESSAGES

Revenues +3% in local currency; Solutions +3%, Services +3%
Spain back to positive growth in 3Q14
based on a gradual macroeconomic improvement in the Spanish market
Latam + 9% in local currency with expected acceleration by year end.
AMEA sustaining double digit growth rate in local currency (+13%)
Recurrent EBIT margin (7.5%)
Restructuring of 16m represents bulk of 2014 plan
NWC up, as anticipated, to 114 DoS. The improvement will be
concentrated at the end of the year
FCF of 100m reiterated, based on achieving some milestones

A LEADING TECH COMPANY

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BRIEF LOOK AT 9M14

9M14 RESULTS: MAIN HEADLINES

9M14

Variation
Local currency /
reported

9M13

Order Intake (M)

2,126

+3% / -2%

2,177

Revenues (M)

2,086

+3% / -2%

2,123

EBIT margin Recurrent (1)

7.5%

-0.4 pp

7.9%

Net profit Recurrent (1) (M)

91

+4%

87

Net Capex (M)

42

+17%

36

NWC (DoS)

114

+7

107

Free Cash Flow

-5

---

-24(2)

Net Debt (M)

726

+3%

707

(1) Before extraordinary costs of 16m

(2) Flat after the impact of the disposal of the business of advanced management of digital documentation in Spain and Mexico
A LEADING TECH COMPANY

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BRIEF LOOK AT 9M14

PPAA & HEALTHCARE AND TRANSPORT & TRAFFIC OUTPERFORM

% Variation

9M14 (M)

Spain

Int.

Local Currency

Reported

Energy & Industry

335

-0%

-6%

Financial Services

363

+6%

+0%

Telecom & Media

232

-9%

-19%

PPAA & Healthcare

385

+12%

+9%

Transport & Traffic

431

+9%

+5%

Security & Defence

339

-3%

-4%

Total

2,086

+3%

-2%

35
A LEADING TECH COMPANY

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BRIEF LOOK AT 9M14

SPAIN IMPROVES, LATAM SIGNIFICANTLY TO IMPROVE IN 4Q14

9M14

% Variation

9M13

(M)

(M)

Local Currency

Reported

Spain

797

852

-6%

-6%

Latam

578

611

+9%

-5%

EU/USA

440

415

+7%

+6%

AMEA

272

246

+13%

+11%

Total

2,086

2,123

+3%

-2%

A LEADING TECH COMPANY

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BRIEF LOOK AT 9M14

9M14 SOLUTIONS: SOLID ORDER INTAKE

SOLUTIONS

9M14

Variation
Local currency
/ reported

Order Intake (M)

1,354

+9% / +3%

1,311

Revenues (M)

1,319

+3% / -1%

1,333

Weight
(% total revenues)

63%

+0 pp

63%

Book to Bill

1.03x

+4%

0.98x

Backlog / LTM
Revenues

1.33x

+5%

1.27x

Contribution Margin

17.3%

-0.6 pp

17.9%

9M13

33
A LEADING TECH COMPANY

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BRIEF LOOK AT 9M14

9M14 SERVICES: DOUBLE DIGIT GROWTH IN 3Q

SERVICES

9M14

Variation
Local currency
/ reported

Order Intake (M)

771

-5% / -11%

866

Revenues (M)

768

+3% / -3%

790

Weight
(% total revenues)

37%

-0 pp

37%

Book to Bill

1.00x

-8%

1.10x

Backlog / LTM
Revenues

0.94x

-5%

0.99x

Contribution Margin

10.8%

-0.3 pp

11.1%

9M13

34
A LEADING TECH COMPANY

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BRIEF LOOK AT 9M14

9M14 DIVERSIFICATION BY VERTICAL

Spanish revenues break down by
market 9M14
Security &
Defence

Transport &
Traffic
8%

Telecom & Media

12%

16%

Financial Services

27%
19%

Energy & Industry

18%

PPAA &
Healthcare

Revenues outside of Spain break

down by market 9M14
Security &
Defence

Transport
& Traffic

21%

Telecom & Media

26%

9%
11%

Financial Services

14%

Energy & Industry

19%

PPAA &
Healthcare
A LEADING TECH COMPANY

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INDEX

Who we are
Brief look at 9M14
Outlook 2014
2013 Performance
A LEADING TECH COMPANY

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OUTLOOK 2014

GUIDANCE FOR 2014: FREE CASH FLOW

Main considerations and perspectives:

FCF of 100m
(assumes the billing and
collection of certain
projects in Latam and
collections from contracts
recently awarded and to
be formalized)

Positive revenue growth in local currency

Low/mid single digit decline in Spain
Double digit growth in local currency in
Latam & AMEA
Flat performance in Europe

Recurrent EBIT margin similar to 2013

NWC & Capex below 2013 levels

Net debt reduction and adequate shareholders remuneration

A LEADING TECH COMPANY

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INDEX

Who we are
Brief look at 9M14
Outlook 2014
2013 Performance
A LEADING TECH COMPANY

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2013 PERFORMANCE

2013: MAIN MESSAGES

2013 targets achieved
Positive revenue growth in local currency (+2% YoY)
Strong performance in Latam (+22% in local currency)
Spain: Public clients down by 23%, but bottoming out
Operating margin at 7.8%
NWC and Capex stable
Positive FCF evolution

A LEADING TECH COMPANY

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2013 PERFORMANCE

MAIN 2013 FIGURES

2013

Variation
vs. 2012

Objectives
2013

Order Intake (M)

3,029

B-t-B 1.04x

Book-to-Bill >1x

Revenues (M)

2,914

+2% (1)

Slightly positive (3)

EBIT margin Recurrent

7.8% (2)

-0.7pp

Around 8%

Net profit (M)

116

-9%

---

Net Capex (M)

64 (3)

-14%

65 - 75

NWC (DoS)

109

+5

100 110

Free Cash Flow

52 (3)

+35%

---

Net Debt (M)

622

-11

---

(1) In local currency; -0.9% in reported terms

(2) Before extraordinary costs of 28m
(3) Adjusted for the impact of the disposal of the business of advanced management of digital documentation in Spain and Mexico. Revenues in 2013 of this activity
reached 19m and were 49m in 2012. Order Intake totals 19m in 2013 and 28m in 2012. Includes positive impact (25m) in FCF from divestment
A LEADING TECH COMPANY

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Investor Relations
irindra@indra.es
Avda. de Bruselas 35
28108 Alcobendas,
Madrid Spain
T +34 91 480 98 00
F +34 91 480 98 47
www.indracompany.com