Indra Sistemas S.A. — Earnings Release 2020

Feb 27, 2020

February 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: 27755756# Access to the live event: https://event.on24.com/wcc/r/2178280-1/4EA0CB66D85027BE8360C3AC3A0E4794?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: 418899534# Access to the Webcast Replay: https://event.on24.com/wcc/r/2178280-1/4EA0CB66D85027BE8360C3AC3A0E4794?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.

• ¹ 2019 Order Intake (+7%) grew again above revenue growth (+4% in local currency)
• ² Backlog up +11%, surpassing the €4.5bn mark at 1.4x revenues, new record for Indra
• ³ Revenues up +4% in local currency in 2019. Minsait revenues grew +6%. By geographies, America stood out (+12% in local currency). 4Q19 Transport & Defence revenues temporary down due to delays in milestone certification of specific projects
• 4 • EBIT grew +11% in 2019, pushed by Minsait profitability (3.8% EBIT margin), despite the lower contribution of the Election Business
• 5 • Net profit stood at €121m and improved +1.3% due to higher tax rate (29% in 2019 vs 25% in 2018)
• FCF reached €8m driving Net Debt / EBITDA LTM ratio down to 1.8x (1.6x excluding SIA acquisition) 6

• 7 •Indra renewed its presence in the major sustainability indexes and generated more than 1,400 jobs in Spain (more than 3,000 in the last two years)

• Excluding the ACS acquisition which started to consolidate on October 1st, 2019 and the FX impact

434 399 504 549 609 665 1,556 1,591 3,104 3,204 FY18 FY19 50% 14% 16% 20% 50% 12% 17% 21% +9% / +9% -9% / -8% +2% +12% / +9% +4% / +3% 430 453 586 623 ^{739 782} 1,682 1,828 3,437 3,686 FY18 FY19 49% 13% 17% 22% 50% 12% 17% 21% +6% / +6% +5% / +5% +9% +7% / +6% +8% / +7% Local Currency / Reported Revenues (€m) Local Currency / Reported Order Intake (€m) Spain America Europe AMEA

Indra backlog (€m) T&D backlog (€m) Minsait backlog (€m)

Indra backlog/revs LTM T&D backlog/revs LTM Minsait backlog/revs LTM

8

*742 SIA employees not included

9

Indra´s presence in the main ESG indexes Supporting gender equality

	Guidance 2019	FY19	Guidance 2020
Revenue growth (in constant currency)	Low single digit	+4%	Mid single digit
EBIT growth	>10%	+11%	>15% (>€255m)
FCF before NWC	>100 m€	€139m
Free Cash Flow		€8m	>150 m€

T&D

FY19 EBITDA and Margin 4Q19 EBITDA and Margin

FY19 EBIT and Margin 4Q19 EBIT and Margin

The NGWS is a System of Systems (SoS) that includes a New Generation Fighter (NGF) and a set of unmanned vehicles (Remote Carriers - RC) to expand the capabilities of the fighter, with all those assets interconnected and operated through a Combat Cloud

MAIN AREAS OF PARTICIPATION FOR INDRA

1) Joint Concept Study:
Scope: Indra's Role:	Define NGWS capabilities and common architectures Define and update technology development roadmaps Establish program framework for all the phases SP´s nominated Co-Contractor, together with Dassault in FR and Airbus D&S in GE.
	2) JCS Inter-Pillars Consistency / SIMLAB:
Scope:	Ensure timely results for various demonstration projects during NGWS Design Phase Activities to be supported by SIMLAB to allow consistency amongst main stakeholders
Indra's Role:	SP's nominated Co-Contractor, together with Dassault in FR and Airbus D&S in GE.
3) Sensors:
Scope: Indra's Role:	Development of technical breakthroughs in Sensors, Defensive Aids and EM effectors. Next generation of smart distributed systems to be more sensitive, flexible and robust Incorporating Big Data, Artificial Intelligence and advanced communications. International Prime contractor and Program leader in this pillar in all three countries.
	4) Systems of Systems/Combat Cloud:
Scope:	Information and Intelligence gathering, sharing and exploitation, operating in cloud Rely on advanced architectures, cybersecurity, distributed computing and communications.
Indra´s Role	Prominent role at international level and Pillar leader/Main contractor in Spain.

	FY19 Order Intake (€m)			Revenues (€m) FY19					4Q19 Revenues (€m)
	Local Currency / Reported				Local Currency / Reported				Local Currency / Reported
	2,114	+5% / +5%	2,210			1,916	+6% / +5%	2,015
32%	672	-5% / -6%	635	29%	30%	580	+10% / +10%	635	32%		520	+5% / +4%	542
		+1% / +1%	791	36%	34%	661	+5% / +6%	697	35%	31%	163	+6% / +5%	171	32%
37%	785						+0% / -1%			35%	180	+4% / +4%	187	35%
20%	418	+25% / +25%	522	24%	23%	436		432	21%	22%	115	+5% / +4%	119	22%
11%	239	+12% / +10%	262	12%	13%	240	+6% / +4%	251	12%	12%	62	+6% / +4%	65	12%
	FY18		FY19			FY18		FY19			4Q18		4Q19
Energy & Industry
Financial Services
	PPAA & Healthcare
							Telecom & Media

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.

Net Debt Bridge – Cash Flow (€m)

* €281m excluding IFRS 16 impact

Net Working Capital (DoS)

Gross and Net Debt Structure

	FY19	% total	FY18	% total
L/T Debt	1,380	98%	1,359	97%
S/T Debt	27	2%	42	3%
Gross Debt	1,406	100%	1,401	100%
Cost of Gross Debt	1.8%		2.0%
Cash & Others	855	n.m.	918	n.m.
Net Debt	552	n.m.	483	n.m.
Cost of Net Debt	2.7%		3.2%

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

Investor Relations irindra@indra.es

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