Applus Services S.A. — Investor Presentation 2021

Nov 30, 2021

Applus+ Group Strategic Plan 2022-2024

November 2021

Agenda & Speakers

Fernando Basabe Chief Executive Officer

Javier López Serrano Head of Energy and Industry

Joan Amigó Chief Financial Officer

Jordi Brufau Head of Laboratories

2022-2024 Plan - Unlocking Value

Portfolio evolution

towards higher growth end markets and to mitigate business risks

Accelerate growth aligned to global megatrends

Energy transition, Electrification, Connectivity

Continued focus on ESG

2024 targets linked to management remuneration as of 2022

Enhance returns to shareholders

• Continuous investment in organic and inorganic growth
• Dividend distribution and share buyback

A Top 10 Global Player in Fragmented TIC Industry

• TIC industry: 20+ markets Applus+ chosen markets:
• Power Generation & Distribution
• Oil & Gas Capex/Opex
• Construction and Infrastructure
• Statutory Vehicle Inspection
• Transportation OEM (Auto, Aero, Rail)

Testing, Inspection, Certification and other services to support our customers manage quality, health & safety, and environmental standards and regulations

Our Winning Formula: Applus+ Strategic Pillars

The Applus Group is at the forefront of ESG best practices also supporting customer retention and wins

Alignment with Sustainability megatrends, reinforced through our Strategic Portfolio evolution

Financial performance & Sustainable Value creation

Our Winning Formula: Applus+ Strategic Pillars

Small sample of global customers

2022-2024 Roadmap: Strategic Objectives

Portfolio evolution towards higher growth end markets and to mitigate business risks

2022-2024 Roadmap: Structural Growth Drivers

Energy Transition, Electrification & Connectivity

2-3x increase in renewables investment to \$500-750bn p.a.(1)	\$100bn 20x investment in electrification of the increase in Europe battery production capacity by 2030(3) since 2020(2) mobility industry		\$5.5-12.6trn economic value enabled by the IoT globally by 2030(3)
Energy & Industry	Auto	Idiada	Labs
 Power, Renewables, Hydrogen  Infrastructure	 Battery and high voltage car system  New forms of private transport	 Transition to green vehicles  Autonomous vehicle and ADAS	 EVs, battery testing, EMC testing  Cybersecurity and IoT

		Supported by long term TIC drivers
	Regulation	Complexity	Outsourcing
(1) Outlook 2020 , Wind and BP Energy	Solar 2020-50 under Rapid and Investment	Net Zero scenarios.

(2) McKinsey as of September 2021. Includes investments in companies and start-ups working on electrifying mobility, connecting vehicles, and autonomous driving technology.

(3) McKinsey estimates.

2022-2024 Roadmap: Active Portfolio Management

Portfolio Evolution – Track Record

Oil & Gas Opex 21% Oil & Gas Capex 5% Renewables, Power, Infra. 27% Automotive 25% Idiada 13% Labs 9% 2018 Revenue 2021 Proforma Revenue* Oil & Gas Opex 25% Oil & Gas Capex 11% Renewables, Power, Infra. 24% Automotive 22% Idiada 13% Labs 5%

Rebalanced portfolio towards higher quality business mix

2022-2024 Roadmap: Target Portfolio Evolution

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ESG - Vision and Targets

	Vision	2024 Targets Linked of 2022 remuneration to management as
Environment	Help the environment by improving both ours and our client's industries and mitigate the negative impact of climate change on our business	 30% reduction of Scope 1 & 2 emissions vs 2019  Be scope 1 and 2 carbon neutral by 2023  Plan for net zero by 2050 under SBTi
Social	To attract diverse, talented and committed people enabling them to reach full potential in a safe and contented workplace	 ≥ 40% management positions and the Group's Corporate Services positions covered by women  10% reduction in Lost Time Injury Frequency
Governance	To uphold our principles of good governance and to operate ethically, responsibly and with highest integrity which our stakeholders expect and deserve	 ≥ 90% Compliance with applicable CNMV (Spanish regulator) recommendations  ≥ 98% professionals complete the training and sign up to the Code of Ethics
Recognition	 MSCI ESG Rating (AA) – Top Quintile of peers  CDP (B) – Above average and in the "Management" category  Sustainalytics – 15.6 Low Risk	 Gaia (72/100) – Above average and increase of 10 from previous  FTSE4Good IBEX – Included

Divisional Strategy Summary

	Renewables, Power, Infra.	• Leveraging Energy Transition opportunities • Accelerating growth and scale through M&A strategy
E&I	O&G	• Growing high-value services through technology solutions and digital tools • Focus on sustainable opex services / leveraging synergies with Renewables, Power and Infrastructure
	Labs	• Continuing to grow organically in chosen markets favoured by megatrends • Delivering growth capacity from recent acquisitions • Driving further growth and margin uplift through strong inorganic pipeline
	Automotive	• Strengthening leadership position in highly profitable business with strong medium term market outlook • Emerging markets expansion as a long term opportunity
	Idiada	• Investing in higher growth and margin segments driven by new technologies • Increasing exposure to new market participants driving technology change

2022-2024 Roadmap: Strategic Objectives

(*) Continuing operations / (**) Excluding IDIADA Accelerated Depreciation (AD)

Applus+ Group - Financials Strategic Plan 2022-2024

Joan Amigo, Chief Financial Officer

Revenue growth in line and margin improvement ahead of 2018-2020 plan until COVID19 impacted Successful management actions to mitigate downside risks during pandemic

(1) Adjusted for Other Results, amortisation of acquisition intangibles and impairment (*) Proforma for IFRS16

• Strong cash generation
• Leverage below 3x supporting M&A
• 10 acquisitions in 2020/21 accelerating repositioning of Group towards higher quality business mix
• ROCE recovering from COVID and on track to continue increasing

Acquisitions since 2020

	Companies acquired		10
---	--------------------	--	----

• Total up front investment € 307m
• Annual Revenue € 192m
• Adj. Op. Profit Margin 14%
• ROCE (First year) 8.7%
• Increase in Revenue (1) + 11%
• Increase in Margin (1) + 30 bps
• Increase in EPS (1) + 13%

Financial Targets

Financial Targets 2022-2024

• Mid to high single digit average organic
• M&A

• AOP margin 2024: to improve to 12%**

• EPS CAGR 21-24: above 13% pre buyback

• Average cash conversion rate above 70%
• ROCE 2024: >12%

	Renewables, Power, Infra.	Labs	Idiada	Auto	O&G
Organic Revenue Average 2022-24	High single digit	High single digit	High single digit	Low single digit	Low single digit
AOP Margin 2024	>10%	>16%	>12%**	>20%	>7%
M&A			Post renewal

(*) Continuing operations / (**) Excluding IDIADA Accelerated Depreciation (AD)

Renewables, Power, Infra include Diversified Industries

• Improved organic growth profile after disposals enhanced by acquisitions
• AOP margin to increase to 12%(*) reflecting portfolio evolution

Cash Generation & Liquidity

• Strong Cash Generation to continue
• Comfortable Liquidity (€584m) with Long Term due dates

15 cts per share)

Applus+ Group – E&I Strategic Plan 2022-2024

Javier Lopez Serrano, Head of Energy & Industry Division

Current Business Overview

Current Business Overview

Strategic Reorganization to Position the Division for Future Growth

% Rev 2021e c.51% c.49%

How Energy Transition Will Drive Opportunities for E&I?

Increasing Opportunities from Energy Transition

New Opportunities with global O&G clients driven by increasing focus on de-carbonization

Strategic Priorities

Power / Renewables / Infra & Building / D. Industrial O&G

• Market Outlook
• Energy Transition driving significant opportunities
• Investment to upgrade ageing infrastructure

• Safer and more sustainable buildings and infrastructure

• Opex growth driven by regulations and ageing assets

• Capex under pressure from climate change initiatives offset by demand for O&G

Leveraging synergies between end markets

Strategic Priorities

• Leverage division global presence, customers, reputation and technical skills and resources to accelerate Power and Renewables growth
• Invest in further developing and commercialising technology and digital tools to offer higher value services

• Acquisitions to expand geographically to become a leading global player in core services

• Focus on Opex and retain Capex optionality

• Grow high-value services through technology and digital tools as a differentiating factor
• Review of underperforming assets and geographies

Illustrative Example of Increasing Demand in Technology and Digital Services

• Safety: Digital twins reduce the requirement for people to spend time in hazardous areas which results in Cost & Time Savings
• Quality of experience provides competitive advantage. Visual inspection activities and reporting is faster, more efficient and of higher quality
• Accessibility: Data can be captured efficiently, eliminating the need of scaffolding, rope access, etc.
• Comparability: Models can be compared over time at set intervals to regularly track degradation
• Availability: Access to information globally 24/7 allowing Remote Analysis of the data, leading to cost savings and higher flexibility
• Increasing use of artificial intelligence to accelerate timings and increase accuracy of the analysis and reporting
• Multiple end-markets: Renewables, Power, O&G, Infrastructure & Building

E&I To Accelerate its Diversification Process

2022-2024 ROADMAP	FINANCIALS	DIVISIONS: E&I	SUMMARY	APPENDIX
Key Financial Targets
	Renewables, Power, I&B, DI	O&G		Total E&I Division
Organic Revenue Average 2022-24	High single digit	Low single digit		Mid Single Digit
Organic AOP Average 2022-24				c.10%
M&A
AOP Margin 2024	>10%	>7%		9-10%

Applus+ Group – Laboratories Strategic Plan 2022-2024

Jordi Brufau, Head of Laboratories Division

Current Business Overview

		Global Positions		Local Positions
	Mechanical	Electrical & Electronic	Cybersecurity	Construction	Metrology & Calibration	System Certification
Services	Structural and materials testing	EMC Electrical safety Climatics Vibrations Wireless	Product evaluations Site audits	Fire testing Durability	Legal metrology Industrial calibration	Systems certification
End Markets	Aerospace & Defence Industry	Automotive & Industry	Pay systems Network devices IoT	Building materials	Multi-sectorial	Multi-sectorial
2021 Proforma Revenue	35%	34%	11%	9%	6%	5%

Current Business Overview

Acceleration in Acquisition Strategy to Build High Growth and Margin Business

Synergies from Acquisitions

How we add value with acquisitions
 Reliable Analysis, Auto testing: Oct 2020 in Shanghai and Detroit, annual revenue of €24m  Expanded the facilities including a dedicated EMC chamber for batteries  Further expansion plan in Shanghai to add full-suite of high technology capabilities
 QPS, Electrical product certification: Dec 2020 in Canada and US, annual revenue of €16m  Combining knowledge and capabilities of QPS in certification with Applus in testing  Combining certification marks
 IMA, Materials testing: May 2021 in Dresden, annual revenue of €25m  Adds scale in Germany with market access to Eastern Europe  Replicate high value-added Applus services to IMA clients  Expand the IMA medical device testing to other Applus Labs

At the Forefront of Technological Change Supporting the Megatrends

• Rapid increase in electrical and connected products in all areas including industrial, auto, aero
• New entrants that develop products quickly challenging the large established players
• Advancements in battery technology with new design, chargers, control units, network devices
• Requiring testing for electrical safety, EMC, wireless and cybersecurity

• Cybersecurity become is essential in all connected products and network devices

• Growth of alternative energies. Hydrogen fuel cells and hydrogen piping and storage tanks will require extensive testing including at cryogenic temperatures

• Thermoplastic composites, 3D Printing materials and other advanced materials are being developed and tested for aerospace, consumer products and other industries

Applus Laboratories is a leading provider of electrical & electronic and materials testing services and will benefit from the technological changes driving this megatrend

Strategic Priorities

• Leverage growth potential of recent acquisitions
• Further M&A
• Benefit from significant Government R&D funding

	Mechanical		Service expansion for mechanical testing in US and Europe where Applus already has strong presence
Strategic Priorities	Electrical & Electronic		Geographic expansion to where the high growth is, supported by recent acquisitions. EV testing services primarily in China and also to Central Europe and US
	Cybersecurity		Provide cybersecurity services to support clients manage the risk in their new products
	Construction, Metrology, System Cert		Continue to strengthen local position and expand to new countries when opportunities arise

Continue Momentum in Organic and M&A leading to High Growth and Margins

Applus+ Group - Auto & Idiada Strategic Plan 2022-2024

Fernando Basabe, Chief Executive Officer

IDIADA: Business Overview & Market Opportunities

IDIADA: Strategic Priorities & Targets

Market Outlook	 & autonomous vehicles 	Significant industry investments into new technologies driven by green and connected New players in addition to the traditional large manufacturers
Strategic Priorities	 Maintain leadership position in new technologies   Leverage use of digital services	Focus investment in higher value-add segments and growth countries
Concession renewal	 Contract ends Sept 2024  Tender expected to be published in 1H 2022  Well positioned to win the contract
Organic Revenue Average 2022-2024	High single digit	AOP Margin 2024	Above 12%(*)

Automotive: Business Overview & Market Opportunities

24%

46

Roadmap to 2024: Applus Strong Track Record Supports Outlook for Renewals

• Renewed 17 contracts €122 Million(*)
• Awarded 19 new programs €32 Million(*)
• Lost 2 programs € 9 Million (*)
• 1 Program discontinued by the government - € 8 Million (*)

Strong Track Record (2012-2021) Contracts to be renewed (2022-2024)

2023: €63M

€ Million Annual Revenue

	2022: €70m		2023: €63M
	Costa Rica: 35		Galicia: 52
	Alicante: 13		Illinois: 10
	Buenos Aires (Province): 12		Other: 1

• Massachusetts: 7
• Chile 1 region: 3

2024: €9M

• Basque Country: 6
• Buenos Aires (Taxis): 2
• Other: 1

Opportunities

• Main opportunities in Latam in the short-medium term and Asia-Middle East in the medium-long term
• Well positioned as world leader for new programs in emerging markets

Automotive: Strategic Priorities & Targets

Market Outlook	 Safety inspection is the core business and will continue growing despite electrification and technological changes  E-mobility is an opportunity as new regulations expected for zero emissions vehicles and other forms of personal transportation  Mature markets to continue single digit inspection volume growth  Opportunities in emerging markets in medium to long term
Strategic Priorities	 Contract renewals and win competitor contracts that come up for renewal  Be positioned for:  opportunities from new regulations in existing contracts  opportunities in emerging markets and new legislation
Organic Revenue Average 2022-2024	Low single digit >20% AOP Margin 2024

Applus+ Group - Key Highlights Strategic Plan 2022-2024

Fernando Basabe, Chief Executive Officer

2022-2024 Plan Summary - Key Messages

Portfolio evolution

towards higher growth end markets and to mitigate business risks

Accelerate growth aligned to global megatrends

Energy transition, Electrification, Connectivity

Continued focus on ESG

2024 targets linked to management remuneration as of 2022

Enhance returns to shareholders

• Continuous investment in organic and inorganic growth
• Dividend distribution and share buyback

2022-2024 Plan Summary - Targets

Financial targets	 Revenue Growth 2021-24 CAGR above 10% • EPS CAGR 21-24: above 13% pre buyback  Mid to high single digit average organic • Average cash conversion rate above 70%  M&A • ROCE 2024: >12%  AOP margin 2024: to improve to 12%*
Capital allocation	 Continous investment in organic growth  M&A to support strategy (€300-400m over the plan)  Dividend distribution of at least 20% Adjusted Net Profit (minimum 15 cts per share)  Target 5% share buyback in 2022  Leverage target < 3x
ESG	 30% reduction of Scope 1 & 2 emissions vs 2019  ≥ 40% management positions and the Group's Corporate Services positions covered by women  10% reduction in Lost Time Injury Frequency to ≤ 0.85  ≥ 90% Compliance with applicable CNMV (Spanish regulator) recommendations  ≥ 98% required professionals completed Code of Ethics training

(*) Continuing operations / (**) Excluding IDIADA Accelerated Depreciation (AD)

Applus+ Group Appendix Strategic Plan 2022-2024

November 2021

Alignment with Key Megatrends

Alignment with key megatrends offering highest opportunities for Applus

Energy Transition			Electrification		Connectivity
2-3x	increase in renewables investment to \$500- 750bn p.a.(1)	\$100bn	investment in electrification of the mobility industry since 2020(5)		\$5.5- 12.6trn	economic value enabled by the IoT globally by 2030(9)
~\$2.2trn	average annual clean energy investment and financing 2026-30(2)	~33%	CAGR 2020-25 in Global EV sales(6)		\$10.5trn	annual global Cybercrime costs by 2025(10)
\$300bn	total hydrogen investments through to 2030(3)	~75%	Europe EV (BEV, PHEV, and FCEV) market share as a % of total by 2030(7)		~24%	CAGR 2018-23 in revenue pool for device-enablement platforms for IoT and IT(9)
6x	increase in total hydrogen investments through 2025(4)	20x	increase in Europe battery production capacity by 2030(8)		~37%	CAGR 2020-30 of the autonomous vehicles (9) IoT use case

(1) BP Energy Outlook 2020, Wind and Solar Investment 2020-50 under Rapid and Net Zero scenarios. (2) International Energy Agency, Announced Pledges by 2050 scenario. (3) Hydrogen Council, assumes all announced projects come to fruition. (4) Hydrogen Council, includes Hydrogen Council Members only. (5) McKinsey as of September 2021, includes investments in companies and start-ups working on electrifying mobility, connecting vehicles, and autonomous driving technology. (6) International Energy Association Stated Policies Scenario. (7) McKinsey, expectation under the most likely accelerated scenario. (8) McKinsey, based on announced buildup plans. (9) McKinsey. (10) Cybersecurity Ventures.

Auto & IDIADA: Innovation & Technology examples

In Auto, use of simulators for training and straight through processing for efficiency

The use of simulators with virtual 3-dimensional vehicles on screen allows for a flexible, agile, portable and cost-effective training of Auto inspectors by simulating the inspection of any type of vehicle without it having to be physically present. Simulation provides unlimited fault scenario, vehicles and environments.

Further enhancements with the online booking, payments and vehicle arrival at the station have improved the working capital and efficiency of the operation. It is a better customer experience and reduces the physical contact of people at the stations during Covid times.

CAVRide (Idiada): A standard production car to Level 4 Autonomous

Combining laser technology with short, medium and long-range radar and cameras, the driverless car is highly automated including emergency intervention. The car was first tested on the simulator at IDIADA before being put to test around the IDIADA headquarters in Catalonia.

ROCE Calculation

Total Capital Employed

ROCE (1) = Net Adjusted Operating Profit after tax / Capital Employed

ROCE (2) = Net Adjusted Operating Profit after tax/ Capital Employed, excluding Assets related to the Purchase price allocation from 2007 Leverage Buy Out

Alternative Performance Metrics

Applus' financial disclosures contain magnitudes and metrics drafted in accordance with International Financial Reporting Standards (IFRS) and others based on the Group's disclosure model 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
• Net Profit, measure of earnings operating profit after interest, taxes and minorities
• Adjusted measures 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, impairment and transaction & integration costs
• PPA Amortisation corresponds to the amortisation of the Purchase Price Allocation related to acquisitions, allocated to intangible assets and Goodwill reduction for finite life concessions
• Capex, realized investments in property, plant & equipment or intangible assets
• Free Cash Flow, operating cash generated after capex investment, working capital variation and tax & interest payments and before leases
• IDIADA Accelerated Depreciation (AD), to adapt useful life to contract/concession duration

Alternative Performance Metrics

• Cash conversion, calculated as the ratio of EBITDA minus capex & change in working capital over EBITDA
• Net Debt, current and non current financial debt, other institutional debt less cash. As per bank covenant definition, calculated at annual average exchange rates and pre-IFRS16
• Leverage, calculated as Net Debt/LTM Ebitda as per bank covenant definition
• AOP, Adjusted Operating Profit
• EPS, Earnings per share
• P.A., per annum
• FX, Foreign exchange
• LTM, Last twelve months
• CAGR, Compounded Annual Growth Rate
• ROCE, Net Adjusted Operating Profit After Tax/Capital Employed
• WC, Working Capital
• EV, Electrical Vehicle