Indra Sistemas S.A.

Investor Presentation • May 11, 2020

1Q20 Results

May 11th, 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: 98891222# Access to the live event: https://event.on24.com/wcc/r/2291242-1/BF54B9B1B63EF66AAA9005DC33C67C1B?partnerref=rss-events

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 2033645147 US: +1 (646) 722-4969 Access code: 418928045# Access to the Webcast Replay: https://event.on24.com/wcc/r/2291242-1/BF54B9B1B63EF66AAA9005DC33C67C1B?partnerref=rss-events

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.

Employees

Clients & Communities

We moved promptly to protect our employees' wellbeing, both at our premises as well as at home.

• More than 90% of Indra workforce has been working from home since the second week of March.
• Increased strict personal hygiene measures and deployment of protective equipment (liquid sanitizers, masks, Covid-19 tests, etc) in all our factories and premises in operation.

We have used our technology to guarantee the continuity of our clients' operations from day one of the pandemic.

• A significant part of our customers' operations are considered "essential" for their national economies.
• Indra has secured the continuity of our client's operations via remote and secured access

Financial Stability

We are moving decisively to respond to the potential adverse financial consequences of the current situation.

• Strengthen our financial position by securing additional liquidity and refinancing maturities over the next two years.
• Cost and capex contention plan to mitigate potential impact on financial metrics.

Covid-19 is starting to have a major impact in the global economy and thus we expect an impact which is still unclear on Indra's results in the coming quarters.

Therefore, Indra's 2020 guidance is withdrawn and the decision to resume dividend payments is postponed.

• The impact of Covid-19 on 1Q20 results has been still limited and mainly concentrated in the T&D division (delays in specific projects). 1
• Backlog up +12%, new record for Indra (€4.8bn). 2
• 1Q20 Order Intake (+8%) grew again, showing both Minsait and T&D divisions positive performance. 3
• Revenues remained stable in 1Q20 vs 1Q19. Minsait sales up +4%. 4
• 1Q20 EBIT decreased €-19M compared to 1Q19, mainly due to the timing and delays in Eurofighter and in some other significant T&D projects due to Covid-19. Minsait's EBIT remained stable. 5
• Improved cash generation in 1Q20 (€+49M) compared to 1Q19. Net Debt / EBITDA LTM ratio up to 2.2x (excluding the impact of IFRS 16) vs 1.9x in 1Q19. 6

1Q20 Sales Growth

1. Excluding the SIA acquisition which started to consolidate on January 1st, 2020 and the FX impact

1Q19 1Q20

Local Currency / Reported Order Intake (€m) +10% +8% Local Currency / Reported +2% 0% Revenues (€m)

Growth in Local Currency

Growth in Reported Terms

%

%

Transport & Traffic Defence & Security

1. EBIT before Other Operating Income & Expenses, including: staff reorganization, integration and acquisition costs, fines, amortization of intangible assets (PPA from acquisitions) and equity based compensation.

MINSAIT

Net Debt Bridge – Cash Flow (€m)

Net Working Capital (DoS)

^1. Non-recourse factoring

Evolution of Debt

195

Evolution of Short-term

Liquidity Facilities

• Only €31m maturing until end of 2021, €39m in 1H2022
  • €120m loan maturities thru YE2021, plus €55m thru 1H2022, pushed forward
• €336m short term liquidity facilities as of May 10th
  • Currently negotiating up to c. €200m additional lines
• No financial covenants
  • 2 Except capital ratio in €80m EIB facility (with ample room)

*Facilities drawn for practical reasons to ensure access to liquidity

Gross and Net Debt Structure

	1Q20	% total	2019	% total
L/T Debt	1,350	93%	1,380	98%
S/T Debt	103	7%	27	2%
Gross Debt	1,453	100%	1,406	100%
Cost of Gross Debt	1.8%		1.8%
Cash & Others	820	n.m.	855	n.m.
Net Debt	633	n.m.	552	n.m.
Cost of Net Debt	3.3%		2.7%

1. 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 not considered in 2021 maturities

Investor Relations irindra@indra.es

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