1. Investment Rail and Road Portugal
ASECAP
António Ramalho, CEO EP/REFER
Lisbon, 29 May 2015

2. Investment Model – 10 years
In the last 10 years the State has invested 1/3 in railways and 2/3 in highways
This trend deepened in recent 5 years: 25% - 75%
This investment volume has significantly improved our international competitive position
Road Network
Q Global
Q Road
Q Rail
2008
23º
14º
25º
2014
12º 2º
Rail Network
Source: World Economic Forúm
The Global Competitiveness Report
However the investment hasn't stopped the traffic reduction and the unbalance between modes

3. EP REFER Financing Model 14% Beneficiary 1% 29% 5% 62% (473M€)
User
17%
Beneficiary
29%
Negative Dividend
53% (958M€)
Equity (FC) 1%
REFER
User
19%
Beneficiary 5%
Negative Dividend
62% (473M€)
Equity (FC)
14%
Total=1.831M€
Total=754M€
Non-Sustainable Model
Weak Integrated Planning
Weak Economic Performance
However there is investment capacity
Funding Gap
7.2M
3.4M

4. The Road to sustainability

5. The measures introduced between 2012 and 2014 reduce the peak net debt of 27 B€ (2035) to 7 B€ (2029), and the Net Debt / Ebitda of 21x to 8x(1)…
26,7 B€
21,0X
7,8X
7,4 B€
(1) October 2012 business plan adjusted to the current projection tolls

6. … due to the renegotiation of PPP's, the strong reduction in operating costs and the confidence of the Shareholder, realized on share capital increase (2)(3)
Reporting Year: 2035
Billion €
Comparison of October 2012 business plan adjusted and the last EP business plan (Fev15)
The calculation of savings includes the capitalization of interest

7. The New Challenge

8. 4. Capabilities valuation
An Intermodal Revolution
1. System organization
3. System funding
Strategic Planning
Merger of the Representations
Integrated Regulation
Common Procurement
Transfer of Dark-Green Funds
Access integration and value capture
Asset optimization
2. System operation
4. Capabilities valuation
Operational Planning
Single Corporate Management
Integrated Management of supply
Port-Interland expansion (co-modality)
Creation of Intermodal Competence Centers
Integrated Internationalization
Refunding of conservation engineering

9. 1. A New Model for Concessions 3. A New Business Approach
A New Model of Management
1. A New Model for Concessions
2. A New Set of Priorities
Motorways not Roads
Risk should be shared not transferred
Commercial Risk allocated to Private, Financial Risk allocated to Public
Who pays defines the selling proposition
To investors: liquidity
To the grantor: sustainability
3. A New Business Approach
Sharing risks
Alignment of incentives

10. Priority to Rail Investment

11. Priority to Asset Valuation
Revenue Increase
Usage
Fee
Concessions
Cost reduction
Procurement
CSI
Asset valuation
Tolls
Headcount
Facilities
Non-core Business
Net Debt
2014
Base Scenario
Ambitious Scenario
2040

12. Priority to Road Maintenance
Evolution of the road fatalities in Portugal
PRN % concluded
Portugal: -48% (-521 VM)
RR Nacional: -58% (-390 VM)
Rede EP, SA: -61% (-354 VM)
Rede Municipal: -31% (-131 VM
2005/2012
86%
55%
98%
100%
Pavements Maintenance
Bridges Maintenance

13. Atlantic Corridor Priority to International Rail Freight Priorities
Conclusion - Corridor Sines- Caia/Madrid
Design and Building -Corridor Aveiro - Vilar Formoso/Salamanca
Atlantic Line Sines-Vigo
Interoperability Iberian Plan - UIC Gauge + ERTMS
Electrification
Circulation of trains with 750 m
Increase capacity for tonnes with simple traction in national and international freight connections
Non-electrified
sections
Lack of capacity
Change of gauge
Limitations of hauled load