TABLE OF CONTENTS CORPORATE BOARDS AND OFFICERS ........................................................................................................ 8 REPORT ON OPERATIONS ................................................................................................................................ 9 Overview ................................................................................................................................................................. 9 1 Business performance .................................................................................. 9 1.1 Results of operations ........................................................................................................................... 9 1.2 Cash flows .............................................................................................................................................. 11 1.3 Financial position ................................................................................................................................. 12 2 Motorway operation .....................................................................................13 2.1 Traffic ....................................................................................................................................................... 13 2.2 Accident rates ....................................................................................................................................... 17 2.3 Toll rates ................................................................................................................................................. 19 2.4 Toll revenue ........................................................................................................................................... 19 2.5 Road maintenance .............................................................................................................................. 21 2.6 Service station revenue .................................................................................................................... 23 2.7 Road user services .............................................................................................................................. 24 2.8 Actions for damage to the Company ........................................................................................... 25 3 Other operations ............................................................................................26 3.1 Investments completed .................................................................................................................... 26 3.2 Investments underway ..................................................................................................................... 26 3.3 Investments planned ......................................................................................................................... 27 3.4 Other upcoming works ...................................................................................................................... 27 4 Reconciliation of IFRS and Italian GAAP financial statements 29 4.1 Reconciliation of IFRS/IAS figures with Italian GAAP (in Euro/thousands) .................. 29 4.2 Table detailing the investment plan pursuant to the concession arrangements ........ 29 5 Human resources ..........................................................................................30 5.1 Environment and personnel ............................................................................................................ 30 5.2 Human resource organization ........................................................................................................ 31 5.3 Health and safety in the workplace .............................................................................................. 31 6 Corporate governance .................................................................................33 6.1 Services Charter .................................................................................................................................. 33 6.2 Certification ........................................................................................................................................... 33 6.3 Corporate liability model pursuant to Legislative Decree 231/2001 ............................... 34 7 Related party transactions ........................................................................36 8 Corporate governance and ownership report ..................................39 9 Significant regulatory events ...................................................................42 10 Research and development ......................................................................43 11 Number and par value of treasury shares owned ..........................43 12 Risk and uncertainty management .......................................................44 13 Outlook ...............................................................................................................44 FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 ...................................... 47 GENERAL INFORMATION ................................................................................................................................ 55 FORM AND CONTENT OF THE FINANCIAL STATEMENTS ................................................................... 57 SIGNIFICANT ACCOUNTING POLICIES ..................................................................................................... 59 NOTES TO THE STATEMENT OF FINANCIAL POSITION AND THE INCOME STATEMENT ....... 71 2018 Report on Operations – Autostrada Brescia Verona Vicenza Padova S.p.A. 3 DISCONTINUED OPERATIONS .................................................................................................................... 100 FINANCIAL INFORMATION FINANCIAL INFORMATION ..................................................................... 102 ADDITIONAL INFORMATION ....................................................................................................................... 105 MANAGEMENT AND COORDINATION ACTIVITIES .............................................................................. 114 2018 BOARD OF STATUTORY AUDITORS' REPORT ............................................................................ 116 2018 INDEPENDENT AUDITORS' REPORT ............................................................................................. 121 PROPOSAL FOR ALLOCATION OF 2018 PROFIT .................................................................................. 127 2018 Report on Operations – Autostrada Brescia Verona Vicenza Padova S.p.A. 4 Share capital €125,000,000 Composition as at December 31, 2018 SHAREHOLDERS N. SHARES PAR VALUE OWNERSHIP A 4 Holding S.p.A. 125,000,000 1.00 100.00% TOTAL 125,000,000 1.00 100.00% 2018 Report on Operations – Autostrada Brescia Verona Vicenza Padova S.p.A. 5 Autostrada Brescia Verona Vicenza Padova S.p.A. Autostrada Brescia Verona Vicenza Padova S.p.A. is summoned, at a first and only calling, to meet on April 30, 2019 at 11:00 a.m. at the corporate headquarters in Verona, Via Flavio Gioia 71, to resolve upon the following Agenda: 1. Financial statements for the year ended December 31, 2018, Board of Directors' Report on Operations, Board of Statutory Auditors' Report and Independent Auditors' Report: related resolutions thereon; 2. Determination of number of Board of Director members and appointment of such members pursuant to Article 15 of the Corporate By-laws for the years 2019–2020- 2021; 3. Determination of Board of Director remuneration pursuant to Article 20 of the Corporate By-laws for the years 2019–2020-2021; Pursuant to Italian Civil Code Article 2370 and Corporate By-laws Article 12, the shareholders with voting rights are eligible to attend the General Meeting. Shareholders entitled to attend the General Meeting may be represented by proxy, in accordance with Italian Civil Code Article 2372 and Corporate By-laws Article 13. Verona; April 10, 2019 On behalf of the BOARD OF DIRECTORS CHAIRMAN (Carlos Del Rio Carcaño) 2018 Report on Operations – Autostrada Brescia Verona Vicenza Padova S.p.A. 6 2018 Report on Operations – Autostrada Brescia Verona Vicenza Padova S.p.A. 7 CORPORATE BOARDS AND OFFICERS 2016 – 2018 Board of Directors 1 CARLOS DEL RIO CARCAÑO Chairman 2 CARLOS GARCIA CABRERA Director ANDONI ARMENTIA AMANTEGUI Director 3 DANIEL VENTIN MORALES Director CESAR AUGUSTO PENA JIMENEZ Director 4 2017 – 2019 Board of Statutory Auditors VITO GALIZIA Chairman Repres. of Ministry of Economy and Finance FELICE MORISCO Standing auditor Repres. of Ministry of Infrastructure and Transportation LEONARDO COSSU Standing auditor CRISTIANO MACCAGNANI Standing auditor GIULIANO TERENGHI Standing auditor GIUSEPPE BENINI Alternate Auditor MARCELLO CRESTANI Alternate auditor General Manager BRUNO CHIARI 1 Board of Directors appointed for 2016-2017-2018 term at General Meeting of Shareholders held on September 8, 2016 2 Appointed as Chairman on July 12, 2018 to succeed Flavio Tosi, who resigned on July 12, 2018 3 In office since January 24, 2018, succeeding Maurizio Pagani, who resigned on January 24, 2018 4 In office since September 19, 2018, co-opted to replace Flavio Tosi, who resigned on July 12, 2018 2018 Report on Operations – Autostrada Brescia Verona Vicenza Padova S.p.A. 8 REPORT ON OPERATIONS REPORT ON OPERATIONS Overview Dear Shareholders: This overview of the Report on Operations, which