Indra Sistemas S.A.

Investor Presentation • Feb 23, 2022

FY21 Results

February 23rd, 2022

CONFERENCE CALL DETAILS

LIVE EVENT:

The Company will host a conference call for investors and analysts today at 18:30 (Spanish time). Please find below conference call telephone numbers: Spain: +34 911140101 France: +33 170710159 UK: +44 2071943759 US: +1 6467224916 Access Code: 25430899# Access to the live event: https://onlinexperiences.com/Launch/QReg/ShowUUID=2B95D9E8-03DC-405E-BB3F-4640E32CC58C

WEBCAST REPLAY: A recording of the conference call will be available for 30 days on the following telephone numbers:

Replay dial number: Spain: +34 910387491 France: +33 (0)170710160 UK: +44 20 3364 5147 US: +1 (646) 722-4969 Access code: 425018204# Access to the Webcast Replay: https://onlinexperiences.com/Launch/QReg/ShowUUID=2B95D9E8-03DC-405E-BB3F-4640E32CC58C

This presentation has been produced by Indra for the sole purpose expressed therein. Therefore, neither this presentation nor any of the information contained herein constitutes an offer sale or exchange of securities, invitation to purchase or sale shares of the Company or any advice or recommendation with respect to such securities.

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 of the mentioned estimations and is not obliged to update or revise them.

This document contains information that has not been audited. In this sense, this information is subject to, and must be read in conjunction with, all other publicly available information.

This disclaimer should be taken into consideration by all the individuals or entities to whom this document is targeted and by those who consider that they have to make decisions or issue opinions related to securities issued by Indra.

Indra beats twice-revised guidance levels in all metrics, ending the year well above pre-Covid levels, and setting a number of historical records

• Revenues in 2021 achieved record highs, both in Transport & Defence as well as in Minsait, both delivering double-digit growth vs 2020, and comfortably exceeding 2019 levels
• EBIT margin stood at 7.5% in 2021, a significant improvement over 2019 levels (6.9%) 2
• Net Profit reached €143m in 2021 vs €121m in 2019 (+18%) 3
• Free Cash Flow in 2021 was €289m, a new record level, substantially above the previous one at €186m in 2017, and well above 2021 guidance of more than €140m 4
• Net debt was reduced to €240m, a ten-year low, from €481m in December 2020, bringing Net Debt/EBITDA ratio down to 0.8x vs 2.5x in December 2020 5
• The company announced in 2021 the payment of a dividend of €0.15 per share in July 2022, after seven years without any shareholder remuneration 6

1

1. Excluding the impact of the SmartPaper acquisition which started to consolidate on January 1st, 2021 and FX impact for the year

5

2021 Breakdown Revenue Growth 2021 vs 2020

(Constant currency)

FY21 Operating Margin¹ (€m)

4Q21 Operating Margin¹ (€m)

1.EBIT before Other Operating Income & Expenses, including: staff reorganization, impairments, capital gains, integration and acquisition costs, fines, amortization of intangible assets (PPA from acquisitions) and equity-based compensation; 2. Includes €-189m from the efficiency plan and €+36m Metrocall capital gain; 3. Includes €17m from facilities sale and €-7m from the provision of the real estate plan; 4. Includes €-94m from de efficiency plan; 5. Includes €-7m from the provision of the real estate plan

Excluding Capital Gain and Real Estate Provision

8

Relevant presence in the main ESG indexes

Supporting gender equality

1. Before the capital gain of €17m from the sale of San Fernando de Henares' facilities and €-7m from the provision of the real estate plan 2. Before the cash impact from the workforce transformation plan of 2015 (€-24m) and 2020 (€-34m), and the sale of the San Fernando facilities (€+40m).

• T&D Backlog at all-times highs, driven by multi-year Defence contracts in Spain (Lanza 3D, F110, 8x8 armoured vehicle, Helicopter NH90 and Chinook) and a new push in Eurofighter (with both new orders and mid-life upgrade contracts)
• 2021 Revenues at record highs, boosted by the strong growth in Defence (+22% vs 2020) and the beginning of the recovery of Transport & Traffic (+4% vs 2020)
• T&D EBIT Margins at double-digit levels despite Covid, which is still affecting the supply chain and delaying the milestone recognition of certain international projects

FY21 T&D Order Intake (€m) FY21 T&D Backlog(€m)

Local Currency / Reported

FY21 Revenues (€m)

4Q21 Revenues (€m)

Local Currency / Reported

Transport & Traffic Defence & Security

FY21 Operating Margin¹ (€m)

1.EBIT before Other Operating Income & Expenses, including: staff reorganization, impairments, capital gains, integration and acquisition costs, fines, amortization of intangible assets (PPA from acquisitions) and equity-based compensation; 2. Includes €-62m from the efficiency plan and €+36m Metrocall capital gain; 3. Includes €7m from facilities sale and €-1m from the provision of the real estate plan; 4. Includes €-23m from de efficiency plan; 5. Includes €-1m from the provision of the real estate plan

4Q21 Operating Margin¹ (€m)

14

Excluding Real Estate Provision

12.1%

52

5

• Backlog and Revenues at record highs, with revenues growing organically at +11%
• Highest historical level of EBIT Margin at 4.9%, backed by the execution of all the efficiency plans, change of mix and revenue growth
• 18% organic growth of Digital and Proprietary Solutions, now accounting for 36% of Minsait sales. Both businesses deliver margins above Minsait's average
• Very low level of workforce unassigned to projects since the completion of the transformation plan
• Six bolt-on acquisitions in 2021 (Flat 101, Consultoria Organizacional, Net Studio, Credimatic, MSS and Overview effect), focused in key strategic fields: Cybersecurity, Payment Systems, Digital Marketing and Data Analytics
• Two contracts already signed from the Next Generation European funds, and more expected to come
• High levels of demand backed by strong macro recovery in our main countries
• New Real Estate reduction plan aiming at adapting our facilities to the new post-covid working habits. The plan will deliver €11.5m run-rate savings, with initial costs of €7m already charged in 2021 accounts

New Real Estate Action Plan launched during 4Q21:

€7m provisioned in 4Q21 with estimated run-rate savings of €11.5m from 2023 onwards

• Mainly focused on Spain, but it also includes some contribution from Latinamerica
• This new plan increases our target of space reduction to more than 100,000 m² between 2020 and 2023 and when completed will take total savings to €24m p.a.

FY21 Minsait Backlog(€m)

FY21 Minsait Order Intake (€m)

Local Currency / Reported

MINSAIT

FY21 Revenues (€m)

Local Currency / Reported

4Q21 Revenues (€m)

(€m)

FY21 Operating Margin¹

4Q21 Operating Margin¹

(€m)

1.EBIT before Other Operating Income & Expenses, including: staff reorganization, impairments, capital gains, integration and acquisition costs, fines, amortization of intangible assets (PPA from acquisitions) and equity based compensation; 2. Includes €-127m from the efficiency plan; 3. Includes €10m from facilities sale and €-6m from the provision of the real estate plan; 4. Includes €-71m from de efficiency plan; 5. Includes €-6m from the provision of the real estate plan

1. For 2020 and 2021 excludes extraordinary items related to employee restructuring plans and asset disposals

*Includes trade working capital balances, group financial assets, balances with public entities, grants, JV's in Defense and IFRS 16 balances

* ROCE = Earnings before interests and after taxes divided by Capital Employed

Net Working Capital ST (DoS)

Net Working Capital ST+LT (DoS)

Net Debt (€m)

1. Non-recourse factoring; 2. EBITDA LTM excluding IFRS 16 (€34m in 2021), 2020 cost of the efficiency plan (€189m), Metrocall Capital gain (€36m in 2020), Capital gain of San Fernando facilites sale (€17m in 2021) and the provision of the Real Estate plan (€7m in 2021)

Gross and Net Debt Structure

1. European Investment Bank; 2. Including €245m Convertible Bond with 2023 maturity; 3. €303m Corporate Bond with 2024 maturity

240

€240

Investor Relations irindra@indra.es

Avenida de Bruselas, 35 28108 Alcobendas Madrid Spain T +34 91 480 98 00 www.indracompany.com

Number of Shares	Actual Position	% Capital Position
Cristina Ruiz	154.945	0,09%
Ignacio Mataix	151.083	0,09%
Total	306.028	0,17%

• Approximately 50% of the total Remuneration is paid in shares:
  • Fixed Remuneration (25% of total) is paid in cash
  • Variable Annual Remuneration (35% of total) is paid 70% in cash and 30% in shares (deferred over a 3 year period)
  • Medium Term Remuneration 2021-2023 (40% of total) is fully paid in shares. Linked to cumulative 3-year targets, including a component directly linked to share price performance
• CEO's contractually committed to owning 2x of their Fixed Remuneration in shares (obligation to maintain them for 3 years)
• Rest of top management´s remuneration structured along similar lines
• All Board Members invest 50% of its total remuneration in shares