Investor Presentation Aston Swift, IR March 2020 Disclaimer This - PowerPoint PPT Presentation

Investor Presentation Aston Swift, IR March 2020

Disclaimer This document may contain statements that constitute forward looking statements about Applus Services, SA (“ Applus +” or “the Company”) . These statements are based on financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations, which refer to estimates regarding, among others, future growth in the different business lines and the global business, market share, financial results and other aspects of the activity and situation relating to the Company. Such forward looking statements, by its nature, are not guarantees of future performance and involve risks and uncertainties, and other important factors that could cause actual developments or results to differ from those expressed or implied in these forward looking statements. These risks and uncertainties include those discussed or identified in fuller disclosure documents filed by Applus+ with the relevant Securities Markets Regulators, and in particular, with the Spanish Market Regulator, the Comisión Nacional del Mercado de Valores. Applus+ does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that the projected performance, conditions or events expressed or implied therein will not be realized. This document contains summarised information or information that has not been audited. In this sense this information is subject to, and must be read in conjunction with other publicly available information including if necessary any fuller disclosure document published by Applus+. Nothing in this presentation should be construed as a profit forecast. 2

Contents Introduction STRATEGY AND TARGETS 2018 AND 2019 OUTCOMES

Applus+ at a glance A Leading Global Provider of Testing, Inspection and Strategic Focus on Attractive End-markets Certification Services (% FY19 Revenues) One of the world's leading Testing, Inspection & Certification companies Providing solutions for customers in all types of industries to ensure that their assets and products meet quality, health & safety and environmental standards and regulations 23,000+ people in 2019 Diversified Geographic Footprint Financial Performance (FY19) Shareholders (% FY19 Revenues) Revenue of € 1,778 million 5% 5% 5% Market cap: € 1.5bn Middle East & Up 6% on 2018 1% 1% Africa 10% Spain 23% *11% *22% Asia Pacific Adj. Op. Profit of € 197 m 11% Up 10% from 2018 *10% 83% LatAm Margin 11.1% 11% *10% Up 42 bps from 2018 River and Mercantile Threadneedle EPS up 11.5% North Rest of Norges Melqart America Europe 19% 26% Dividend per share €0.22 *20% *27% Fidelity Others Net debt/EBITDA at 2.2x 4

The Divisions (I) Energy & Industry Division Automotive Division (Statutory Vehicle Inspection) Non destructive testing, industrial and environmental inspection, Statutory vehicle inspection services for Safety and/or Emissions quality assurance/control, engineering/consultancy, vendor surveillance, technical staffing and assistance, certification and 20 million inspections across 30 programmes in 12 countries asset integrity services plus a further 6 million programme managed inspections In 2015 integrated 3 separate divisions realising cost savings and optimising growth opportunities through complementary 83% Regulated and 17% Liberalised geographic footprint and cross selling 41% 40% 22% 60% c. 14,600 employees c. 4,600 employees Adj. Op. Profit Adj. Op. Profit of Revenue of Revenue €89.0m €86.4m € 1,059m 12 countries 60 countries € 385m Margin 23.9% Margin 8.4% Oil & Gas Opex (43% division revenue) Spain Oil & Gas Capex (15% division revenue) Costa Rica Ireland Argentina Power Generation and Distribution USA Construction Chile Denmark Mining Ecuador Finland Aerospace Uruguay Andorra Telecom 5

The Divisions (II) IDIADA Division (Auto OEM) Laboratories Division Testing, engineering, homologation and R&D services provider Product testing, certification and engineering services to to the leading vehicle manufacturers (OEMs) improve product competitiveness and promote innovation Specialised facilities, people and proving ground with knowledge of global technical requirements Multi-technology state-of-the-art laboratories serving the Aerospace, Auto, Construction, Energy, IT industries Owned 80% by Applus+ and 20% Government of Catalonia. Since 1999 operates the business and assets owned by the Main facilities in Spain with further laboratories in North Government of Catalonia under a long term contract under 5 America, Asia and the rest of Europe year renewals with current renewal/expiry of 2024 13% 13% 5% 6% c. 2,800 employees c. 1,100 employees of Revenue Adj. Op. Profit of Revenue Adj. Op. Profit €240m € 29.1m €12.9m €93m 12 countries 23 countries Margin 12.7% Margin 14.5% Germany Industry (incl Aerospace, Auto) Passive Safety Spain Spain Construction (Fire and structural Chassis & Power Train testing) UK Rest of Europe Proving Ground System certification China North America Homologation (Type Information Technology Czech Rep Asia Pacific Approval) Metrology France, Italy, Belgium, Korea 6

History of the Group and Investment Case Period 1996 - 2003 2004 - 2007 2008 - 2013 2016 - 2019 2014 - 2015 2017 1 5 % Investors 53% 70% 100% Free Float 100% 25% Financial Institutions and Financial Institutions and 1 0 % 30% other shareholders other shareholders 22% Free Float 7 5 % Automotive Acquisition of RTD Energy & Acquisition of VELOSI Acqn of Inversiones The Milestones established in 1996 (est 1937) Industry (est 1982 ) Finisterre IPO of division IDIADA contract Acquisition of Formed 20 more companies Eleven more awarded (est 1971) Norcontrol acquired companies acquired (est 1981) Four more Labs contract companies ABO of 10% at € 10.55 awarded (est 1907) acquired in September 2017 • A “TIC” company benefiting from Quality, Safety & Environmental structural growth drivers: • Regulations, Risk, Outsourcing, Product Variety, Complexity, Ageing • Leading market positions in key markets • Good balance of developed (2/3) and emerging market (1/3) exposure • High entry barriers: accreditations, reputation, relationships, network, innovation • Cyclical recovery in Oil & Gas end market, continued growth in other markets and margin potential • Strong cash flow, strong balance sheet, low capital intensity 5 • Fragmented industry

Environmental, Social and Governance First CSR Report in 2015 following the Global Reporting Initiative (GRI) UN Global Compact Member since 2017 and Advanced Level from 2018. Follow the 10 Principles UN Sustainable Development Goals Adopted 9 since 2017 as a framework for CSR goals Environmental Social Governance Development and inclusion programmes in place CDP (B score) and FTSE4Good High adherence to CNMV IBEX in 2019 recommendations (89%) Low voluntary turnover rate € 200 million revenue (11% Strong culture of compliance (12%) Group) from services to reduce environmental impact Annual Corp. Governance road 10% fall in accident rate show by Non Executive Director 8

Contents INTRODUCTION STRATEGY AND TARGETS 2018 and 2019 OUTCOMES

Strategy Update presented in Feb 2018 for the period 2018 - 2020 Focus on the operational strategy Leading to  Leadership  Organic revenue growth  Innovation & Technology  Margin improvement  Trusted Partner  Cash generation Financial targets over 2018 – 2020 (*) Capital Allocation Priorities  Annual revenue growth of mid single digits organic  Maintain dividend at 20% of Adjusted Net Profit  Margin improvement of 70-100** bps in 2018 and 20-30 bps in 2019 and 2020  Leverage below 3x  Strong cash generation to continue with a cash  Acquisition capacity in the range of €150 conversion above 70% million per annum ** On 24 July 2018 upgraded to 100 – 120 bps in 2018 and on 14 May 2019 upgraded to “by at least” 30 bps in 2019 (*) Financial targets @ constant rates and current perimeter 10

Energy & Industry Division: Strategic Targets 2018 - 2020 Key Initiatives Target  Focused Growth Plan for each country Average Annual Organic  Increase market share in key markets Mid Single Digit Revenue growth  Expansion of service offering into all geographies  Best practice implementation across division Recover  Operational efficiency driving economies of scale Operational 100 bps in the  Digitally focused on efficiency and new operating models Excellence period 2018-  Back office optimisation (SAP roll out in 2019 and Expanding 2020 Financial Shared Services)  Expand presence in Non Oil & Gas End Markets (Power, Construction, Aerospace)  Enhance our position in all end markets for Key Geographies (South America, Asia Inorganic Pacific, USA)  Focus on Technologically advanced companies 11 11