Applus Services S.A.

Investor Presentation • May 5, 2020

Applus+ Group

Q1 2020 Results Presentation

5 May 2020

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 profitforecast.

HIGHLIGHTS

FINANCIAL REVIEW BUSINESS REVIEW COVID – 19 SUMMARY & OUTLOOK

Fernando Basabe Chief Executive Officer

Highlights

• Good start to the year with every division growing well until mid March when COVID-19 materially impacted Applus
• Sudden business disruption resulted in rapid and high revenue drop through to profit, especially for Auto division at the beginning of the facility closures
• Focus is on COVID-19 management: people´s health, customer's requirements, liquidity & adapting costs

Q1 Results:

• Revenueof €416.9 million up 0.3% (organic1 -0.3%)
• Operatingprofit2 of €27.7 million down 28% (organic1 -30%)
• Operating profit2 marginof 6.6%, down from9.3%
• Adjusted2 free cash flow of €29.6 million down 37%

Net debt/EBITDA ratio 2.0x and liquidity3 of €622 million

⁽¹⁾Organic is at constant exchange rates

(2)Adjusted for Other Results, amortisation of acquisition intangibles

(3) Liquidity includes €150m signed in April

HIGHLIGHTS

FINANCIAL REVIEW BUSINESS REVIEW COVID – 19

SUMMARY & OUTLOOK

Joan Amigó Chief Financial Officer

Good performance halted in last two weeks by coronavirus

Material impact on margin due to sudden lockdown, mainly in Auto

	Q 1
	2 0 2 0	2 0 1 9	V L Y s
R e v e n u e	4 1 6. 9	4 1 5. 4	1. 4	0. 3 %
d j. A E B I T D A	5 3. 5	6 3. 0	( ) 9. 5	( ) 1 5. 1 %
b i d in E t a m a rg	1 2. 8 %	1 5. 2 %
& D A	( ) 2 5. 8	( ) 2 4. 6
(1) f d j. i i A O P t t p e r a n g r o	2 7. 7	3 8. 4	( ) 1 0. 8	( ) 2 8. 0 %
d f j. i i A O P t p r o m a r g n	% 6. 6	% 9. 3
i i P P A A t t m o r s a o n	( ) 1 6 4.	( ) 1 8 4.
h l O t t e r r e s s u	( ) 0. 4	( ) 0. 2
f i i O t t p e r a n g p r o	1 2. 6	2 3. 5	( ) 1 0. 9	( ) 4 6. 2 %
l F i t n a n c e r e s u	( ) 6. 2	( ) 5. 4
f b f i P t t r o e o r e a x	6. 5	8. 1 1	( ) 1 1. 7	( ) 6 % 4. 4

(1) Adjusted Op. Profit is stated before amortisation of acquisition intangibles, restructuring and transaction & integration costs

	Q 1
	2 0 2 0	2 0 1 9	h C a n g e
(1) d d j A E B I T D A t u s e	3. 5 5	6 3. 0	( ) 9. 5	( ) 1 1 % 5.
k l i i i I t n c r e a s e n o r n g c a p a w	( ) 1 9. 8	5. 7
C a p e x	( ) 4. 9	( ) 1 0. 3
d j d i h l A O C F t t u s e p e r a n g a s o w	2 8. 8	5 8. 4	( ) 2 9. 6	( ) 5 0. 7 %
T a x e s	4. 2	( ) 7. 9
I t t n e r e s	( ) 3. 4	( ) 3. 5
d d h l A j F C F t u s e r e e a s o w	2 9. 6	4 7. 0	( ) 1 7. 4	( ) 3 7. 0 %
d h i i & O E t t x r a o r n a r e s e r s	3 1.	0 1.
d d i i i i i D M t t e n s o n o r e s v	( ) 0. 8	( ) 5. 0
i h d O C G t t p e r a n a s e n e r a e g	3 0. 1	4 2. 9	( ) 1 2. 8	( ) 2 9. 9 %
A i i i t c q u s o n s	( ) 4. 5	( ) 9. 0
/ h b h i i i & C C F F X a s a n g e s n n a n c n g	2 5. 6	3 3. 9
f l l b l ( ) i i i i I S 1 6 P F R t t a y m e n s o e a s e a e s	( ) 1 4. 2	( ) 1 3. 9
h h f i i i O C t e r a n g e s n n a n c n g	2 3 4. 3	( ) 1 9. 1
l i C t t u r r e n c y r a n s a o n s	( ) 2. 5	0. 9
h i C a s n c r e a s e	2 4 3. 2	1. 8

Cash flow materially impacted from mid March after facility closures took placeduetoCOVID-19

• Working capital remains under control with tight management
• Q1 normally has working capital outflow. Q1 19 inflow was a one–off due to strong revenue growth inE&IdivisioninQ418
• Taxes inflow due to a refund received in 2020

(1) Adjusted EBITDA is stated as Operating Profit before depreciation, amortisation and Other results

b h 3 N D 1 M t t t e e a a r c	D D t e a e u	D r a w n ( ) i l l i € M o n
T L e r m o a n	/ / 2 7 0 6 2 0 2 4	2 0 0 0
C R F	/ / 2 0 6 2 0 2 7 4	0 0 0 4
U S P P- 7 Y e a r s	/ / 2 7 0 6 2 0 2 5	1 5 0 0
S 1 0 U P P- Y e a r s	/ / 2 0 6 2 0 2 8 7	8 0 0
h b O D t t e r e		2 2 5
O G O S S T T A L R D E B T		8 2 5 5
h C a s		( ) 3 9 0 2
/ b T O T A L N E T D E B T I F R S 1 6		4 6 2 3
I F R S 1 6		1 6 4 3
T O T A L N E T D E B T		6 2 6 6

i i d i L t q u y
h d d f l h C U i i i 3 1 M t t a s a n n r a w n a c e s a a r c	4 2 7
f l d l i i i i i i N A t e w a c e s s g n e n p r	1 5 0
i l b l l i i d i A t v a a e q u y	6 2 2

• Most of the Debt facilities with due date 2024 and onwards
• Leverage covenant set at 4.0x b/IFRS 16, tested in June and December

Net debt/Ebitda 2.0x at March

HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW COVID – 19 SUMMARY & OUTLOOK

Fernando Basabe Chief Executive Officer

Energy & Industry Division

EUR Million

• Good start to the year before COVID-19
• Asia-Pac, Latam and Middle East were the regions with higher growth
• Oil & gas grew at a similar rate as the whole division

COVID-19:

• Aprilrevenueestimateddownc.25%yearonyear
• Costreductionsacrossthedivisionbasedonactivitylevel
• Very low oil price has not had an impact yet but is expected, mainly on capex exposed work (158 €million, 9% of total Group revenue in FY2019)

COVID-19:

• April revenue estimated down c. 35% year on year with Spain (70% of the divisionrevenue)beingthemostimpacted
• TemporarylayoffsinSpaininplace
• Labs open in all countries but with low volume

Automotive Division

EUR Million

Q1 2020 Revenue

• Good performance February YTD, with +2.4% organic revenue growth (excluding end of Washington contract impact), whereas March 30% down following the closure of stations duetoCOVID-19
• All countries, except Nordics have been in lockdown or with very low volumes from the second half of March

COVID-19:

• April revenue estimated down c.80% year on year with only the Nordics and someprogrammesinUS&Latamopened
• Temporary lay offs in Spain of 1,500 people. Different actions by country dependingonlegislation
• Expect gradual re-opening of stations and volumes to pick up from mid-May. Volumes loss in H1 expected to be partially recovered in H2

COVID-19:

• April revenue estimated down c. 40% year on year with main facilities of thedivisionlocatedinSpainbeingclosed for two weeks
• TemporarylayoffsinSpaininplace
• Open in most countries but heavily impacted. China back to normal

HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW

COVID – 19

SUMMARY & OUTLOOK

Fernando Basabe Chief Executive Officer

• Health & Safety: strict adherence to each country´s recommendations. Group guidelines updated daily on the intranet. Buying protective equipment for expected ramp up.
• Laboratories in Spain worked 24/7 to design a new process to validate hospital ventilators in 2 days versus a normal process of weeks. It is also testing face masks
• Operations in many countries are procuring and donating protective equipment such as face masks, gowns and gloves to local hospitals
• Focus on liquidity:
  • Drawn €300 million from the bank syndicate revolving credit facility
  • New financing signed of €150 million
  • Working capital daily monitoring of collections and payments.
  • Capex projects being re-evaluated
  • Cancelled the 2019 Group dividend payment of €31 million

Cost reductions:

• Staff: all countries adapting to the situation according to local legislation and government schemes. Main impact in Spain with 3,400 staff on full or part time temporary lay off out of a total of 7,800. Salaries of management teams reduced
• Cost reductions across the organisation based on activity level
• Board and Executive Committee fixed pay cut of 25 to 30% for this period of high uncertainty
• Total Group operating costs (excluding D&A) estimated to be reduced by €30 million (25%) in April vs expected revenue decrease of €60 million (40%)

HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW COVID - 19

SUMMARY & OUTLOOK

Fernando Basabe Chief Executive Officer

Summary of Q1 2020

• Good start to the year with every division growing well until mid March when COVID-19 materially impacted Applus
• Sudden drop in revenue mainly in Spain with little time to adjust cost base meant high drop through to profit
• Ended the quarter with a healthy balance sheet and sufficient liquidity to last a prolonged period of disruption

Outlook

• Outlook for the year provided on 25 February was withdrawn on 19 March
• Outlook for Q2 is for a revenue decrease of circa 35% with a small Adjusted Operating loss. H2 should improve materially, driven by the Automotive division recovery
• New guidance for the year will be provided when there is reasonable visibility

www.applus.com

	Q 1 2 0 2 0		Q 1 2 0 1 9
l l i i E U R M o n	d l j. A R t e s u s	h O t e r l t r e s s u	S t t t a u o r y l t r e s s u	d l j. A R t e s u s	h O t e r l t r e s s u	S t t t a u o r y l t r e s s u	/- % d j. A + l R t e s s u
R e v e n u e	4 1 6. 9	0. 0	4 1 6. 9	4 1 5. 4	0. 0	4 1 5. 4	0. 3 %
b d i E t a	3. 5 5	0. 0	3. 5 5	6 3. 0	0. 0	6 3. 0	( ) % 1 5. 1
i f i O P t t p e r a n r o g	2 7. 7	( ) 1 5. 0	1 2. 6	3 8. 4	( ) 1 4. 9	2 3. 5	( ) 2 8. 0 %
f l i i N t e n a n c a e x p e n s e s	( ) 6. 2	0. 0	( ) 6. 2	( ) 5. 4	0. 0	( ) 5. 4
f i f P B T t r o e o r e a e s x	2 1. 5	( ) 1 5. 0	6. 5	3 3. 1	( ) 1 4. 9	1 8. 1	( ) 3 5. 0 %

% Revenue by Actual Currency

(2)

	h A F X E E t e r a g e c a n g e r a e s s r o v x v u
	J A N M A R -	J A N M A R -	h C	J A N D E C -
	2 0 2 0	2 0 1 9	a n g e	2 0 1 9
U S D	1. 1 0 3	1. 1 3 7	3. 1 %	1. 1 2 0
C A D	1. 4 7 7	1. 5 1 0	% 2. 2	1. 4 8 6
A U D	1. 6 7 1	1. 5 9 5	( ) 4. 6 %	1. 6 1 0

(1)Includes currencies pegged to USD

(2) None above 4% Applus' financial disclosures contain magnitudes and metrics drafted in accordance with International Financial Reporting Standards (IFRS) and others based on the Group's disclosuremodel referred to as Alternative Performance Metrics

EBITDA,measure of earnings before interest, taxes, depreciation and amortisation

• Operating Profit,measure of earnings before interest and taxes

• Adjustedmeasures are stated before other results

• Other results are those impacts corrected from the relevant measures to provide a better understanding of the underlying results of the Group, for example: amortisation of acquisition intangibles, restructuring and transaction &integration costs

• PPA correspond to the Purchase Price Allocation referred to acquisitions, allocated to intangible assets and amortised

• Capex,realized investments in property, plant & equipment or intangible assets

• Operating Cash Flow, operating cash generated after capex investment and working capital variation
• Free Cash Flow, operating cash generated after capex investment, working capital variation and tax & interest payments

• Net Debt, current and non current financial debt, other institutional debt less cash. As per bank covenant definition, calculated at annual averageexchange rates

• Leverage, calculated as Net Debt/LTM Ebitda as per bank covenant definition

• EPS, Earnings per share
• NDT, Non destructive testing

• P.A.,per annum

• FX, Foreign exchange

• LTM, Last twelve months