Indra Sistemas S.A.

Investor Presentation • Oct 27, 2020

9M20 Results

October 27th, 2020

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: 58760334# Access to the live event: https://onlinexperiences.com/Launch/QReg/ShowUUID=096CEC40-5C44-445D-964E-EC4E486032E2

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)172727402 UK: +44 2033645147 US: +1 (646) 722-4969 Access code: 418953406# Access to the Webcast Replay: https://onlinexperiences.com/Launch/QReg/ShowUUID=096CEC40-5C44-445D-964E-EC4E486032E2

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.

• Backlog up +18%, new historic high for Indra (€5,150m). Backlog/Revenues LTM reached 1.68x in 9M20.
• 9M20 Order Intake growth is accelerated in the quarter (+11% in local currency), driven by Transport & Defence.
• 9M20 Revenues down -3% in local currency (-6% in reported terms) and 3Q20 sales also declined -5% in local currency and -10% in reported terms, affected by the structural changes in the businesses. 3
• Operating Margin stood at €87m in 9M20 vs €162m in 9M19 (margin of 4.1% vs 7.1% in 9M19), affected by delays and lower activity. 3Q20 Operating Margin stood at 6.6%, helped by the efficiency measures announced in july.
• Reported EBIT was €-9m in 9M20 vs €127m in 9M19, impacted by delays and lower activity, impairments of Intangible assets (€-95m) in 2Q20, and Metrocall capital gain (€+36m) in 3Q20. 5
• Cash generation in 3Q20 was €51m including the disposal of Metrocall (free cash flow of €14m vs €-1m in 3Q19). Net Debt / EBITDA LTM ratio (excluding the impact of IFRS 16 and the impairments of intangible assets and the capital gain of Metrocall) stood at 2.8x in 9M20 vs 2.4x in 9M19. 6
• Reinforced financial position during the quarter, with more than €1,250m between cash and credit facilities as of September 2020.
• Insider buying-in (annex 1) 8

Local Currency / Reported Order Intake 9M20 (€m)

+11% +8%

Local Currency / Reported Revenues 9M20 (€m)

-3% -6%

Local Currency / Reported Revenues 3Q20 (€m)

-5% -10%

2019 2020 Growth in Local Currency Growth in Reported Terms

%

Indra backlog (€m) Backlog/revs LTM

9M16 9M17 9M18 9M19 9M20

9M20 Operating Margin¹ 3Q20 Operating Margin¹ 9M20 EBIT and Margin 3Q20 EBIT and Margin 162 87 9M19 Op.Margin (€m) 9M20 Op.Margin (€m) -46% -3.0pp 7.1% 4.1%

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.

Estimated Cash savings M€ Estimated EBIT impact M€

	Actions	One-off costs	Ongoing savings	One-off costs	Ongoing savings
		2020	2021	2020	2021
1	Reduction of non-personnel expenses	0	20	0	20
2	Internal processes improvement and new workplace model	-1.4	25	0	25
3	Capex investment reorientation and Balance Sheet adjustments	-100	25	6.3	0
4	Workforce transformation plan	-65	30	-45	30
	Total	-166.4	100	-38.7	75
	January-September 2020	-95		0

	Guidance 2020*	9M20
Revenue growth (in constant currency)	€3,150m – €3,200m	€2,226m
EBIT guidance **	€120m - €135m	€50m
FCF before cash out workforce transformation plan	>€0 m	€-75m

New programs already signed (475 M€) entering into production

386€M in production phase (325€M already signed) Integrated frigate mast F110 (2020-2027)

Tactical Radio Systems

SCRT-MC3,Tactical

Comms and C2

~350€M

348 Vehicle systems 8x8 (2020-2027) ~200-300€M in production phase 1 (150 €M already signed)

SPAIN INTERNATIONAL

Existing and new long-term high volume programs

New aircrafts for Germany (Quadriga) and Spain (Halcon) Sustainment, sales and export opportunities

Spanish National Coordinator and Sensor Pillar global leader of the Future Combat Air

FCAS 2020-…

Warfare, AMPS: Automatic Mission Planning System) and aftermarket

European R&D Programs: Command and Control, Cyberdefence, Airborne Systems, Space Systems, etc.

System

Systems for MKIII (e.g. Electronic

Naval Platform Systems for naval platforms (e.g. Electronic Warfare, IFF: Identification Friend or Foe)

Other relevant programs to be signed in the next 12 months (>250 M€)

Additional big programs in the pipeline

Air Defence Radars

Aeronautical Programs

SIRTAP, MRTT, Maritime

Patrol, Trainer

~200€M

2017-2027

3Q20 Operating Margin 9M20 Operating Margin ¹

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.

9M20 Order Intake (€m)

3Q20 Revenues (€m) 479 433 -3% / -10%

3Q20 Operating Margin 9M20 Operating Margin ¹

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.

Net Working Capital (DoS)

1. Non-recourse factoring; 2.EBITDA LTM excluding IFRS 16, costs of the efficiency plan and Metrocall capital gain

2. European Investment Bank. 2. Including €246m Convertible Bond with 2023 maturity and €296m Corporate Bond with 2024 maturity.

3. The 2023 convertible bond has a put option in October 2021 which has not been considered as part of 2021 maturities

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	Position as of 31/12/2019	Actual Position	Variation	% Capital Position
Fernando Abril-Martorell	363,663	410,851	47,188	0.23%
Cristina Ruiz	50,813	59,588	8,775	0.03%
Ignacio Mataix	34,630	52,154	17,524	0.03%
Javier Lázaro*	78,162	92,426	14,264	0.05%
Total	527,268	615,019	87,751	0.35%

* Javier Lazaro also hold a derivative of 144,680 contracts (strike price: 7.603 €; maturity: 16/09/21)

Fernando Abril-Martorell Position as of 31/12/2019		363,663	Cristina Ruiz Position as of 31/12/2019		50,813	Ignacio Mataix Position as of 31/12/2019		34,630		Javier Lázaro Position as of 31/12/2019		78,162
Date	Shares acquired	Total Shares	Date	Shares acquired	Total Shares	Date	Shares acquired	Total Shares		Date	Shares acquired	Total Shares
24/02/2020	13,628	377,291	24/02/2020	6,455	57,268	24/02/2020	4,203	38,833		24/02/2020	6,064	84,226
28/02/2020	1,464	378,755	28/02/2020	911	58,179	28/02/2020	912	39,745		30/07/2020	8,200	92,426
12/05/2020	790	379,545	12/05/2020	533	58,712	12/05/2020	532	40,277
30/07/2020	30,000	409,545	30/07/2020	876	59,588	30/07/2020	877	41,154
30/07/2020	1,306	410,851				30/07/2020	10,000	51,154
						05/08/2020	1,000	52,154