On Track to deliver shareholder returns

July 2017 Company Milestones 1 2 3 Company A Strong Outlook Overview Foundation for Growth

On Track to Deliver Shareholder Returns - 2 INDEX 1 2 3 Company A Strong Outlook Overview Foundation for Growth

01 Company Overview 02 A Strong Foundation For Growth 03 Outlook On Track to Deliver Shareholder Returns - 3 CAF at a glance

Worldwide projects operating in more than 40 countries across 5 continents

Integrated offering providing a one-stop solution for railway systems

Employing 7,587 staff of which c.30% is highly qualified (1)

Strong R&D and Engineering capabilities more than 950 people

Revenue EBITDA/Margin Order Backlog International as % of Revenue €1.3bn €111351353535m/1m/1m/10000....3333%%%% €6.26.26.2bn6.2 bnbnbn 797979%79 %%%

Note: Data as of 31 December 2016 (1) i.e. engineers and other university degree holders

01 Company Overview 02 A Strong Foundation For Growth 03 Outlook On Track to Deliver Shareholder Returns - 4 Company Milestones

Global leader at the vanguard of technological development with a deep-rooted tradition

1892 2002 2004 2007 2009 2013 2013 2016 Beasain: Former Inauguration of the First variable-gauge First concession for CAF: Launch of URBOS First reference to Fully automated World’s longest ironworks, recon- Integrated Railway dual-voltage high- the Suburban Railway catenary-free tram CIVITY, the com- metros for Helsinki and largest verted into industrial Technology Centre. speed train for Renfe. System of Mexico. (Seville tramway). muter and regional and Santiago capacity tram workshops for wagon rail platform. de Chile. for Budapest repair and assembly.

2006 1917 Early 90s First train fitted with CAF 2010 2011 2014 Incorporation Shareholder consolidation. Cartera traction equipment. Foundation of Launch of OARIS, Shift 2Rail EU of CAF S.A. Social and local savings banks CAF Signalling. the 350 km/h High Joint 2008 provide support to CAF’s project. 2010 Speed Train. Undertaking First 100% low floor tram Start of internationalisation process. Leasing contracts in launched. CAF is (Seville) - light metro. Brazil and Mexico. one of the eight founding members.

2016 Railway Company License and Entity in Charge of Maintenance Certificate for the Spanish railway network 01 Company Overview 02 A Strong Foundation For Growth 03 Outlook On Track to Deliver Shareholder Returns - 5 Corporate Social Responsibility

CAF considers all stakeholders in its strategic approach

Environmental protection is a key focus area, offering sustainable products and Implementation of eco-design in the engineering processes to minimising the environmental impact of industrial activity – having achieved offer the most sustainable solutions from conception of product Commitment to the greenhouse gas emissions below levels set under the Kyoto protocol • CAF’s compromise with the communities in the surroundings Environment & Society • ISO 14001:2004 implemented in all CAF S.A. manufacturing plants since 2001 where its activity is developed comes into being through the promotion of initiatives focused on the improvement of their • CAF publishes environmental product declarations in compliance with ISO 14025 quality of life

Maintaining an open dialogue Ensuring shareholder Progressing in the compliance Devoted to its with the financial community participation in decisions within of Good Governance Code through reinforcing the Investor their competences and focusing recommendations Shareholders Relations Unit on delivering returns

Committed to offer the best- in- Broad base of suppliers to class services and quality to achieve competitiveness and high Engaged with Customers customers from design to quality standards delivery focusing on product • Use of web-based platforms and Suppliers adequacy and customer to ease communication with satisfaction suppliers

Focus on balancing employees’ expectations and business objectives • Employees are the cornerstone of CAF’s success and • Skills development Focused on strategy, as such, the company is committed to programme aimed fostering its employees’ development through training at re-training and Employees courses (e.g. 125,000 hours of employee training expanding the skills of carried out during 2015-2016 at CAF S.A. alone.) our personnel

01 Company Overview 02 A Strong Foundation For Growth 03 Outlook On Track to Deliver Shareholder Returns - 6 Devoted to Delivering Shareholder Returns

Engaging the market Market Performance CAF has reinforced the Investor Relations unit EUR Ibex indexed to CAF share price to have an open dialogue with the market: 40

35 Investor Relations team: Urtzi Montalvo 30

Head of Investor Relations 25 [email protected] 20 2015 2016 2017 CAF Spain IBEX35 Ainara Areizaga Alberto Altuna Investor Relations Investor Relations Shareholding Structure (1)(1)(1) [email protected] [email protected] Cartera Social 26%

CAF is a well-known name in the financial community, Free Float (((2)(2)2)2) 52% Kutxabank (Savings Bank) being covered by a number of analysts: 14%

(((3)(3)3)3) Institutional Investors 8% Dividends per Share (3)

1,2 1,05 1,05 1,05 1,05 80,0% 56,9% 43,9% 39,9% 0,525 27,8% 32,6% 24,6% 0,525 0,58 30,2%

0 0,0% 2010 2011 2012 2013 2014 2015 2016 (1) As of 30/06/2017. Source: Register of Shareholders (2) Kutxabank includes the shares of “Fundación Bancaria Kutxa”. Dividends per share (EUR) Payout ratio (%) (3) Institutional investors includes Indumenta Pueri (5%) and Bestinver (3%). Free float accounted as any investor with holdings below 3% (4) Dividend per share considered the effect of the split carried out in 2016. 01 Company Overview 02 A Strong Foundation For Growth 03 Outlook On Track to Deliver Shareholder Returns - 7 INDEX 1 2 3 Company A Strong Outlook Overview Foundation for Growth

01 Company Overview 02 A Strong Foundation For Growth 03 Outlook On Track to Deliver Shareholder Returns - 8 A Railway Solution Provider

Strong, sustainable growth focused on delivering returns Turnkey Solutions

Portfolio offering along the entire value chain including: rolling stock, services, signalling, subcomponents, superstructure, integration, etc.

Rolling stock covering all segments: high speed, regional, commuter, metros, trams, etc. A High Product Adaptability Deep Roots in the Railway Industry Continuous focus towards delivering operational excellence and seamless execution through Experienced management team with proven track record modularisation E B High degree of product adaptability – bespoke solutions Longstanding shareholders supporting company’s long-term strategy Cost competitive modular platform solutions to meet customer needs High proportion of skilled and experienced employees

Well positioned to capture future growth D C In-House Technological Excellence

Global footprint with international production capabilities Focused on developing pragmatic solutions to tackle real needs for development of the business Increasing exposure to high-growth markets (turnkey management, rail control, services) Achieving technological independence from external and high-volume geographies (Western Europe – mainline) parties for critical railway technologies

Strong presence in high-growth geographies (Latam, NAFTA) and vehicle types (urban, regional)

01 Company Overview 02 A Strong Foundation For Growth 03 Outlook On Track to Deliver Shareholder Returns - 9 A TurnKey Solutions

Development of a Transport System CAF provides integral management and engineering in every phase of the project

1/ Situation Analysis and Feasibility Study Mobility studies and research for financial and legal structures Rolling Stock Other Electromechanical Systems 2/ System Design and Engineering Information & Design of the best railway solution Signalling Communication Systems 3/ Financial Solutions Project Financing Power Supply Leasing/Renting Tailored Solutions

4/ System Manufacture & Construction Railway system (track, stations and signals, etc) Rolling Stock Civil Works 5/ Commissioning Systems Delivery Maintenance / Operation 6/ Operation and Maintenance Infrastructure and Rolling Stock maintenance Spare parts supply Commercial service operation Systems Integration CAF guarantees the integration and compatibility of all the subsystems

01 Company Overview 02 A Strong Foundation For Growth 03 -Outlook On Track to Deliver Shareholder Returns - 10 A TurnKey Solutions

Some references: Comprehensive Solutions CAF has an extensive experience in the execution of complex integral railway transportation projects worldwide Mexico City Toluca Kaohsiung Saragossa

Rolling Stock Signalling Infrastructure and on-board signalling systems: High Speed Trains Regional Trains Commuter Trains Metros LRVs & Tram-Trains Trams & Light Metros Locomotives Coaches -ERTMS 1 and 2 -Mass transit signalling solution (metro and tramway) -Computer based interlocking (CBI) -Centralised railway traffic centres

Maintenance / Refurbishment / Operation Critical Equipment Supplies Wheelsets and their parts Traction & Communication -Infrastructure and rolling -Complete wheelset Equipment stock maintenance -Wheels -Electric Traction Systems -Spare parts supply -Axles -Electric DC Traction Converter -Commercial service -Gearboxes -Electric AC Traction Converter operation -Couplers -Locomotive Traction Converter -After Sales

Civil Works EPC Power Supply Other Electromechanical Systems -Platform construction Electrification of the lines: Systems for stations and tunnels: -Construction and refurbishment of -Engineering, Design, Technical -Video-surveillance systems (CCTV) classic and elastic rails Service, Works Management -Remote control and command systems -Railway terminals and stations and Commissioning for -Internal communication systems -Railway bridges railway superstructure and -Ticketing -Railway yard, maintenance workshops, infrastructure projects. centralised traffic control and services building Simulation Systems -Power substations Documentation Management Testing, etc.

01 Company Overview 02 A Strong Foundation For Growth 03 -Outlook On Track to Deliver Shareholder Returns - 11 B High Product Adaptability

Modularisation driving operational excellence and seamless execution

· CAF has developed new · Results range from 10% to 20% engineering practices based on cost reduction depending on vehicle modularity product family

Platforms of Rolling Stock Customised Solutions

These platforms allow CAF to meet customer demands in terms of cost and CAF has already achieved worldwide recognition for providing fully customised solutions delivery time ·Customisation represents an important competitive advantage, especially in Urban markets Recent contract awards for these platforms: ·Usually on projects requiring specific characteristics (signalling, supply voltage, different platform heights, kinematic envelop, variable gauge, etc.) · URBOS: Utrecht (€440m in consortium) Amsterdam (€149m) · References include: Stockholm (€26m) · Chiclana Tram-train (Spain) · Auckland , EMUs (New Zealand) - 25kV AC with a low floor car · CIVITY: 98 EMUs for Arriva-UK (€740m) · Euskotren , EMUs (Spain) - metric gauge, cabin front detrainment door for passengers 118 EMUs for NS-The Netherlands (€518m) · Sardinia , DMUs (Italy) - tilting system · OARIS: 8 trains for Flytoget–Norway (€118m) · Helsinki, Commuter trains (Finland) – Nordic climate conditions

Oaris Civity Urbos

High Speed Trains Regional Trains Commuter Trains LRVs & Trams & Light Metros Chiclana Auckland Euskotren Sardinia Helsinki Tram-Trains

01 Company Overview 02 A Strong Foundation For Growth 03 -Outlook On Track to Deliver Shareholder Returns - 12 C In-House Technological Excellence

Strong focus on R&D has allowed CAF to develop and own critical key technologies and become technologically independent

1969 1999 Technological Milestones until 2000 1969: 1999: Creation of R&D Tilting train prototype unit. Starts production with own designs

Dependent on In-house development of first R&D subsidiaries Subsidiaries compete in the open market critical technologies version of critical technologies created to supply CAF and other customers

2014: 2016: Founding member First Automatic 2 Technological Milestones 2006: 2013: of Shift Rail EU Train Operation First CAF VEGA multipurpose Joint Undertaking (ATO) over ETCS from 2000 on propulsion system electronic platform in the world (CAF Signalling)

2001 2003 2005 2007 2009 2011 2013 2015 2016

2002: 2004: 2008: 2010: 2011: 2015: Development of High-speed variable Signalling Bitrac bimotor First catenary-free tramway CAF ERTMS certified CAF Train Control gauge train Technology dual-mode Management System locomotive 2011: (COSMOS) Very High-Speed Train

01 Company Overview 02 A Strong Foundation For Growth 03 -Outlook On Track to Deliver Shareholder Returns - 13 C In-House Technological Excellence

CAF Train 2000 Outsourced Outsourced Train Information Centre Critical Components Overview Onboard Energy Storage System Outsourced Outsourced Onboard Signalling System Passenger Information Systems

Outsourced Traction Inverter Outsourced Traction Motor

Wheels, Axles, Gearbox, Wheelsets

Outsourced Charging System for Catenary Free Vehicles Outsourced Trackside Signalling System and Control Centre MoMoMorMo rrree than €150m invested in the last 5 years to reach this level of technological expertise(1) Dependent on In-house development of first R&D subsidiaries Subsidiaries compete in the open market 2012017777----2012012018888R+D Plan in pprrrrogogogogrrrress:ess: critical technologies version of critical technologies created to supply CAF and other customers 68 projects developed in 2016 For 2017 CAF Group will work on 134 projects

CAF Train 2015 Critical Components Overview Train Information Centre Onboard Energy Storage System

Passenger Information Systems Onboard Signalling System

Traction Inverter

Traction Motor Wheels, Axles, Gearbox, Wheelsets

Operation, Maintenance & Optimisation (1) Does not include costs related to contracts engineering or to product standardisation and Charging System for Catenary Free Vehicles Trackside Signalling System and Control Centre process improvement 01 Company Overview 02 A Strong Foundation For Growth 03 -Outlook On Track to Deliver Shareholder Returns - 14 D Well Positioned to Capture Future Growth

UNIFE Market 111 Forecast by geography CAFCAF’s’s Positioning ––– Revenue breakdown by geography

EURbn APAC CAGR 4% Eastern Eur. 122 333.3...2222%%%% 2% APAC 2% CIS 5 2.1% NAFTA 0% 101 8 1.9% 1% RoW Africa/Middle East 10% 8% LATAM 8 3.8% 4 10 1.5% Africa/Middle East 7 7 LATAM NAFTA 9 34% Eastern Eur. 30 2.3% 14% Western Eur. 46% 2010 2016 26 CIS Spain 41% 40 3.6% Rest of Europe LATAM NAFTA 10% 28% 33 Western Eur. 22 APAC 16 5.4%

2013-2015 2019-2021

· Liberalisation and increased government support driving investment in rail markets · Demonstrated ability to capture market share and growth on a global scale · Growth in virtually all markets with Latin America, APAC and NAFTA at the forefront · CAF’s internationalisation has allowed it to substantially offset the impact of the declining national market · Western Europe and NAFTA to remain resilient high-volume regions · Increased exposure in high-volume regions (Europe, NAFTA) · Further penetration in European mainline market (new bids to large incumbent operators; participation in large-contract bids) · Strong presence in high-growth geographies such as Latin America

(1) Accessible Market 01 Company Overview 02 A Strong Foundation For Growth 03 -Outlook On Track to Deliver Shareholder Returns - 15 D Well Positioned to Capture Future Growth

Diversified global customer base

• More than 60 new customers in the last 10 years

H

H

26% 21% > 30 countries Spain Revenues 2016 53% 6 countries

Headquarters H Production Plants Offices Countries with ongoing projects

(1) Manufacturing projects producing revenue in 2015. Services, signalling, spare-parts, wheelsets, etc. not included. 01 Company Overview 02 A Strong Foundation For Growth 03 -Outlook On Track to Deliver Shareholder Returns - 16 D Well Positioned to Capture Future Growth

Diversified customer base worldwide

Spain United Kingdom Netherlands Sweden Finland Norway

Ireland France Belgium EstoniaLuxembourg Germany

Portugal Italy Montenegro Serbia Romania Hungary

Turkey USA

Saudi Arabia India Hong Kong

Mexico

Taiwan

Algeria

Colombia Venezuela Argentina Chile

Tunisia Australia New Zealand

Brazil

01 Company Overview 02 A Strong Foundation For Growth 03 -Outlook On Track to Deliver Shareholder Returns - 17 D Well Positioned to Capture Future Growth

UNIFE Rolling Stock Market (1) Forecast by Vehicle Type CAF’s Positioning – Backlog Breakdown by Vehicle Type

EURbn Locomotives CAGR AS (3) 3% 454545 333.3...5555%%%% Other VHS/HS 2% LR Vehicles 0 2.9% 5% 373737 3 4.7% Metro Vehicles 0 7 4.6% 3 5 7 14.2% VHS/HS 3 2016 Metro/LRV 9 11 3.6% Multiple Units Multiple Units 44% 46%

Locomotives, 16 17 (2) 0.1% Coaches, Wagons

2013-2015 2019-2021

· The highest volumes are concentrated in the Locomotives/Cars/Wagons · CAF ´s backlog with a strong presence in the high-growth and high-volume and Multiple Units segments. segments – Urban and Regional trains · The Very High Speed/High Speed and Urban segments are the types of · On Locomotives, coaches and wagons segment, CAF is only focused in vehicle with greatest growth expected in the market. passenger Locomotives and coaches

(1) Accessible market (2) Highly dependent on freight market (3) Only engineering services 01 Company Overview 02 A Strong Foundation For Growth 03 -Outlook On Track to Deliver Shareholder Returns - 18 E Deep Roots in the Railway Industry

Experienced Management

Chairman and CEO, Andrés Arizkorreta has Executive Committee members have been All top management members have held dedicated more than 35 years to CAF, holding a working for the company for an average of various positions in different areas of the number of different positions of responsibility at 25 years company the company, and as CEO since 2006

Alignment of 2016 Employee Breakdown by Qualification Shareholders Longstanding shareholders are committed with the company’s and long-term strategy Workshop Engineers and Company Operators Qualified (1) 56% 29% 2016 Admin. and Highly Plant Managers High proportion of 15% Skilled and skilled and experienced employees, highlighting Experienced company’s strong focus on R&D and driving Staff innovation

(1) i.e. other university degree holders. 01 Company Overview 02 A Strong Foundation For Growth 03 -Outlook On Track to Deliver Shareholder Returns - 19 INDEX 1 2 3 Company A Strong Outlook Overview Foundation for Growth

01 Company Overview 02 A Strong Foundation For Growth 03 -Outlook On Track to Deliver Shareholder Returns - 20 Outlook

We are at the beginning of anenenew ne wwwgggr grrrowtowtowthhhhcycle

GGGrGrrrowthowth to be supported by:

Integrated and comprehensive product offering including turnkey solutions, signalling, maintenance, leasing and concessions

A growing offering of Rolling Stock components: Traction equipment, Train control system, Wheelsets, Gearbox, etc.

Key competences in urban and regional segments, as well as a focus in core markets (e.g. EU), whilst increasing exposure to high growth regions (e.g. US, Latam, Middle East) Growth Strong pipeline for 2017: 50-60 bids worth €6bn in 5 continents, with special focus in Western Europe

Backlog, awards and pipeline as a pillar for the increase in revenue for the coming years

Mid-term profitability sustained by the continuous search for the operational excellence and seamless execution of efficiency measures

Cash generation driven by improved WC levels, leasing-related debt amortisation and normalised capex requirements

01 Company Overview 02 A Strong Foundation For Growth 03 -Outlook On Track to Deliver Shareholder Returns - 21 Disclaimer

The purpose of this information is purely informative. Any decision taken by any third party as a result of the information contained in this document is the It has not been verified by independent third parties; sole and exclusive risk and responsibility of that in this sense, no express or implied warranty is made third party, and neither CAF, nor its subsidiaries or as to the impartiality, accuracy, completeness or co- representatives shall be responsible for any dama- rrectness of the information or the opinions or state- ge and shall not assume liability of any kind derived ments expressed herein. from the use of this document or its content.

This document contains declarations which consti- The information and opinions contained in this tute forward-looking statements. These forward-loo- document are provided as at the date of the do- king statements should not be taken as a guarantee cument and are subject to verification, completion of future performance or results as they are subject and change without notice. CAF does not under- to risks and uncertainties, many of which are beyond take any obligation to publicly update or revise any the control of CAF and could cause actual results forward-looking statements, whether as a result of which may differ materially from those expressed or new information, future events or otherwise. implied by the forward-looking statements. This document has been furnished exclusively for Therefore, on no account should be construed as an information purposes and it must not be disclosed, advice or recommendation to buy, sell or otherwise published or distributed, partially or totally, without deal in CAF shares, or any other securities or invest- the prior written consent of CAF. ment whatsoever, nor do they aim to offer any kind of financial product or service.

On Track to Deliver Shareholder Returns - 22 www.caf.net

On Track to Deliver Shareholder Returns - 23