Abengoa Sa · OTC:AGOAF
Abengoa Sa — H1 2013 Earnings Presentation
45 slides from Abengoa Sa's earnings presentation, Aug 28, 2013
Slide 1: First Half 2013 Earnings Presentation
Innovative Technology Solutions for Sustainability ABENGOA First Half 2013 Earnings Presentation August 28th, 2013
Slide 2: Forward-looking Statement
Forward-looking Statement This presentation contains forward-looking statements and information relating to Abengoa that are based on the beliefs of its management as well as assumptions made and information currently available to Abengoa. Such statements reflect the current views of Abengoa wit
Slide 3: Introduction to First Half Results
Introduction to First Half Results Summary of changes required to be applied to our financial statements in the First Half of 2013 1 Adoption of IFRS 10 & 11 effective January 1, 2013 Topic Guidance & Considerations Impact IFRS 10 • A new definition of “Control” De-consolidation of financial entit
Slide 4: Agenda
Agenda 1 H1 2013 Business Highlights 2 H1 2013 Financial Highlights 3 Revised Targets 4 Appendix 4
Slide 5: Agenda
Agenda 1 H1 2013 Business Highlights 2 H1 2013 Financial Highlights 3 Revised Targets 4 Appendix 5
Slide 6: H1 2013 Key Figures
H1 2013 Key Figures Positive Q2, Pipeline +11% 110 B€ leading a strong H1 Backlog +14% 7,133 M€ Revenues +15% 3,402 M€ EBITDA +34% 531 M€ Net Income -11% 67 M€ Corp. Leverage 3.2x 6
Slide 7: Continued Business Momentum
What’s New since Q1 2013… 1 Excellent bookings in Q2 has driven Backlog to >7.1 B€ E&C Continued T&D lines in Brazil CSP Plant in Israel Portland Gen. Electric Momentum 1.3 B$ 425 M$ 364 M$ 2 Continued Better outlook for Biofuels business during H2 2013 Business Q2‘13 US Crush Spread Q2’13 EU Crush
Slide 8: Geographic Diversification
Geographic Diversification Geographic diversification continues to be part of Abengoa´s DNA with a low business dependence on a single region H1’13 Revenues 3,402 M€ Rest of EU 12% 13% USA +7% 419 M€ 26% Spain 30% 19% 18% +32% 1,032 M€ 5% 604 M€ Asia & Oc. 5% 4% +37% 163 M€ Africa 8% 2% LatAm +407%
Slide 9: E&C: Excellent momentum with improved visibility
E&C Excellent momentum in E&C, with improved visibility Key Figures Operating Analysis Revenues EBITDA EBITDA Mg. 2,182 M€ +17% YoY 2,182 350 1,859 186 283 H1’13 Revenues 144 108 46.8% 58.0% 68 17% 24% 1,715 1,996 215 242 12.6% 12.1% 350 M€ +24% YoY H1’13 EBITDA H1'12 H1'13 H1'12 H1'13 H1 '12 H1 '13
Slide 10: Solid Business Momentum
Solid Business Momentum Continued building momentum in H1 with significant new awards… ABG Equity Customer Country Value Scope 2014-2016 Combined Portland General $364 M Engineering, design and construction of a 450 MW combined cycle plant for a third party Cycle Plant Electric Transmission Ukrenerg
Slide 11: E&C Results Visibility - Pipeline
E&C Results Visibility - Pipeline …and growing our pipeline of opportunities to drive future revenues Pipeline (B€) 110.2 Split by sector Split by geography 8% 5% 99.3 8% 12% 11% 17% 13% 25% 17% 18% 47% 11% 8% 11% T&D Water Spain Brazil Power Industrial US Rest of Europe Plants Others Mexico LatAm A
Slide 12: Concession-type Infrastructures
Concession-type Infrastructures New legal frame for Solar CSP in Spain removes uncertainty while other assets continue their strong performance Key Figures Operating Analysis Revenues EBITDA EBITDA Mg. 236 M€ +31% YoY 236 140 H1’13 Revenues 60.3% 59.3% 181 109 140 M€ +28% YoY H1’13 EBITDA H1'12 H1'1
Slide 13: Biofuels
Biofuels Continued improvement seen in Q2 Key Figures Operating Analysis Revenues EBITDA EBITDA Mg. 984 M€ +8% YoY H1’13 Revenues 41 4.1% 913 984 41 M€ +681% YoY 681% 0.6% H1’13 EBITDA 5 H1'12 H1'13 H1'12 H1'13 H1 '12 H1 '13 964 ML vs 1,085 ML H1’12 Ethanol produced • EBITDA improvement due to bette
Slide 14: Bioethanol Outlook
Bioethanol Outlook US Crush Spread 2012 & 2013YTD EU Crush Spread 2012 & 2013YTD 250.00 €/m3 $/GAL Crush spreads increasing in 2013 1.05 Crush spreads increasing in 2013 0.90 200.00 0.75 150.00 0.60 0.45 100.00 0.30 0.15 50.00 Jul-12 Nov-12 May-12 Jun-12 Oct-12 May-13 Jun-13 Aug-12 Jan-12 Apr-12 Dec
Slide 15: Technology Update
Technology Update R&D plans continue to advance quarter to quarter Cutting Edge Technologies Quarterly Update Inaugurated Soland, the new solar R&D center. More than 3,500 m2 to Solar increase our capabilities in HCPV, while continuing accumulating hours Technologies of pilot testing (1,437 h for mo
Slide 16: Agenda
Agenda 1 H1 2013 Business Highlights 2 H1 2013 Financial Highlights 3 Revised Targets 4 Appendix 16
Slide 17: Financial Highlights
Financial Highlights …keeping a keen eye on Continued growth delivery… financial stability 3,402 M€ 3.2x Revenues through June 2013, Corporate Leverage ratio as of an increase of 15% Y-o-Y June 2013; -0.5x from 2012 YE level 531 M€ 3.2 B€ EBITDA through June 2013, an Total Liquidity as of June 2013
Slide 18: Reduced CAPEX Plan
Reduced CAPEX Plan Strong commitment towards corporate CAPEX reduction Corporate CAPEX Evolution € Millions 1,189 1,041 817 750 1,048 900 698 Max 450 M€ 600 306 359 64 97 112 132 119 141 141 150 130 130 2010 2011 2012 2013E 2014E 2015E R&D investment & ABG equity capex – projects ABG Equity for new
Slide 19: Reinforced Capital Structure
Reinforced Capital Structure Liquidity protection & management of corporate leverage: key priorities Dec. 2012* Jun. 2013 Corporate Debt 4,757 5,131 Net Corporate Corporate Cash, Equiv. & STFI (2,271) (2,685) Debt Total net corporate debt 2,486 2,446 N/R Debt 5,257 5,298 Non- Recourse N/R Cash Equiv
Slide 20: Key Leverage Ratios
Key Leverage Ratios Reduction of Corporate Leverage a Key Priority Dec. 2012* June 2013 Corporate 3.7x 3.2x Non-Recourse 14.2x 14.0x Consolidated 7.1x 6.7x (excl. pre-op. debt) 3.9x 4.1x *Re-expressed for the Items explained in slide 3 20
Slide 21: Cash-flow Overview
Cash-flow Overview Continued effort in investment plan Cash generated from • EBITDA: 531 M€ operations • Working Capital: (69) M€ • Net Interested Paid: (243) M€ (93) M€ 161 M€ • Taxes and other financial costs: • Discontinued operations: 35 M€ Net Investment • Total capex invested:: 931 M€ 1,012 M€
Slide 22: Reconfirmed FY 2013E Guidance
Reconfirmed FY 2013E Guidance Confirming our 2013e Guidance M€ Revenues EBITDA Corp. EBITDA 2013e 7,250 – 7,350 1,180 – 1,230 800 – 825 Guidance as of Jun. 2013 16% vs 6,312 M€ 27% vs 949 M€ 23% vs 663 M€ 22
Slide 23: Agenda
Agenda 1 H1 2013 Business Highlights 2 H1 2013 Financial Highlights 3 Revised Targets 4 Appendix 23
Slide 24: Asset Rotation Plan
Asset Rotation Plan A clearly identified plan to crystallize value in our assets and deleverage Cash generation (Corporate) Power Transmission Lines in LatAm ~410 M€ Expected Renewable and Total ND Conventional Power ~ 560 M€ Reduction: ~3.1 B€ Others ~ 520 M€ Total ~ 1.5 B€ in equity recycling We a
Slide 25: Sustainable Growth Plan
Sustainable Growth Plan A defined plan to achieve corporate free cash flow generation in 2014 1 Reduce Net ~3.0x in 2013 Corporate Leverage ~ 2.5x from 2014 Financial discipline and solid liquidity management policy 1.5 B€ in cash from asset rotation plan 2 Reduce Corporate ≤450 M€ per year from CAP
Slide 26: Going Forward
Going Forward A clear path going forward... ABENGOA Now in 6 months in 12 months in 18 months Sale of Befesa Improve biofuels Mojave & Hugoton in +500 M€ of additional performance from operation annualized EBITDAe Resilient E&C lowest ever from new concessions Repay 200 M€ of business: >7 B€ project
Slide 27: Agenda
Agenda 1 H1 2013 Business Highlights 2 H1 2013 Financial Highlights 3 Revised Targets 4 Appendix 27
Slide 28: Results by Activity
Results by Activity € in Millions Revenues EBITDA EBITDA Margin H1 2012* H1 2013 Var (%) H1 2012* H1 2013 Var (%) H1 2012* H1 2013 Engineering and Construction E&C 1,715 1,996 16% 215 242 12% 12.6% 12.1% Technology & Others 144 186 29% 68 108 60% 46.8% 58.0% Total E&C 1,859 2,182 17% 283 350 24% 15.
Slide 29: Excellent Revenue Visibility
Excellent Revenue Visibility Focus on execution, increase of backlog and expand recurrent business Estimated Conversion to Revenues Rest of 2014e 2015e+ 2013e M€ June 2013 Backlog E&C 33% 32% 35% Backlog 7,133 M€ 2,370 2,299 2,464 June 13 Contracted 34,901 Concession- Revenues type 36,109 M€ 936 272
Slide 30: Re-expressed Historical Balance Sheets
Re-expressed Historical Balance Sheets Assets (M€) 31/12/2010 31/12/2011 30/12/2012 30/06/2013 A. Non-Current Assets I. Intangible Assets & Property, plant & equipment 3,434 2,793 2,988 2,545 II. Fixed Assets in Project Finance 5,745 7,776 7,742 7,630 III. Financial Investments 486 463 1,445 1,923 I
Slide 31: Re-expressed Historical Balance Sheets
Re-expressed Historical Balance Sheets Shareholders´ Equity and Liabilities (M€) 31/12/2010 31/12/2011 31/12/2012 30/06/2013 A. Equity attribuitable to owners of the Parent Share Capital 23 91 90 89 Reserves and others 1,167 1,344 1,028 968 B. Non-controlling Interest 440 413 742 735 Total Equity 1,
Slide 32: Re-expressed Historical Income Statements
Re-expressed Historical Income Statements M€ 2010 2011 2012 Jun-12 Jun-13 Revenue 4,360 6,689 6,312 2,953 3,402 Depreciation and amortization (229) (231) (422) (152) (238) Rest of net operating expenses (3,652) (5,526) (5,363) (2,556) (2,871) Net Operating Profit 479 932 527 245 293 EBITDA 708 1,163
Slide 33: Great Value from Projects Under Construction
Great Value from Projects Under Construction As of June 30, 2013 Abengoa Expected Ann. Fully Location Capacity (Equity 2013 2014 2015 2016 EBITDAe Start Up Funded? Ownership %) (M€) Solana USA 280 MW 100% Q3 13 65 Mojave USA 280 MW 100% Q2 14 55 Kaxu Trough South Africa 100 MW 51% Q1 15 81 Khi
Slide 34: Capex under construction by segment (I)
Capex under construction by Amounts based on the company´s best estimate as of June 30, 2013. Actual investments or timing thereof may change. segment (I) Ann. Total EBITDAe Pending (M€) Capacity Abengoa (%) Country Start Up (M€) Investment Capex ABG Equity Partners Debt Solar 4,176 1,185 134 68 983
Slide 35: Capex under construction by segment (II)
Capex under construction by Amounts based on the company´s best estimate as of June 30, 2013. Actual investments or timing thereof may change. segment (II) Rest of 2013 2014 2015+ Pending ABG Pending ABG Pending ABG (M€) Capex Equity Partners Debt Capex Equity Partners Debt Capex Equity Partners Deb
Slide 36: Asset Portfolio Capacity
Asset Portfolio Capacity Revenue visibility backed by our solid asset portfolio Extensive concessional asset base once current capex plan completed Solid producing assets Solar (MW) Transmissions (km) Biofuels (Ml/year) 1,763 12,033 3,270 110 3,175 95 810 5,771 843 3,175 4,631 843 1,631 1,631 June 2
Slide 37: Asset Portfolio Capacity: T&D Lines
Asset Portfolio Capacity T&D Lines Name Voltage Country Location Ownership Partner Operation Construct. Develop. ATE IV 525 - 230 AC Brazil Curitba – Bateias, Canoinhas – São Mateus 100% 85 ATE V 230 AC Brazil Londrina – Maringá, Jaguariaíva – Itararé 100% 132 Campos Novos – Videira, Dona Francisca
Slide 38: Asset Portfolio Capacity: Cogeneration & Others
Asset Portfolio Capacity Cogeneration & Others Main Name Country Location Ownership Partner Operation Construct. Develop. Characteristic Torraspapel Cogeneración Motril Gas turbine; Spain Granada 19% 49 MW 81% Cogeneración Villaricos Diesel engines; Spain Almería 99% 23 MW Enernova Ayamonte Gas turb
Slide 39: Asset Portfolio Capacity: Solar
Asset Portfolio Capacity Solar Main Name Country Location Ownership Partner Operation Construct. Develop. Characteristic PS 10 CSP – Tower Spain Sanlúcar La Mayor 100% 11 MW PS 20 CSP - Tower Spain Sanlúcar La Mayor 100% 20 MW Solnova 1 CSP Spain Sanlúcar La Mayor 100% 50 MW Solnova 3 CSP Spain Sanl
Slide 40: Asset Portfolio Capacity: Water
Asset Portfolio Capacity Water Name Main Characteristic Country Location Ownership Partner Operation Construct. Develop. Almería EPC + O&M 15 years Spain Almería 50% Pridesa 50% 50,000 m3/day Cartagena EPC, Finance + O&M Spain Cartagena 37.5% Pridesa 62.5% 65,000 m3/day Bajo Bajo FCC, SPA y EPC + O&
Slide 41: Asset Portfolio Capacity: Bioenergy
Asset Portfolio Capacity Bioenergy Name Main Characteristic Country Location Ownership Partner Operation Construct. ABNE – Ravenna 1st generation USA Ravenna 100% 341 Ml/yr Colwich 1st generation USA Colwich 100% 95 Ml/yr Portales 1st generation USA Portales 100% 114 Ml/yr 2nd generation biomass ABB
Slide 42: Corporate Debt Maturity
Effective Maturity Management Significant extension of average life of corporate debt vs. previous years Syndicated Loans Other corp. debt Expected repayment of Syndicated Loan & Other Corp. Bonds Convertible Bonds Debt with remaining 2013 bond issuances proceeds Corporate Debt Maturity 1,333 985 67
Slide 43: Net Debt Bridge
Net Debt Bridge Consolidated Net Debt Change in the Period Dec´12 Jun´13 243 462 93 Net Interest Paid Taxes and other 931 348 Operative cash financials EBITDA 531 M€ 270 WC (69) M€ 53 39 85 6,700 Cash in Total Capex De- Other net 143 consolidation Investments of net debt Dividends 7,207 Treasury Sto
Slide 44: Ethanol Business Outlook
Ethanol Business Outlook Our presence in three different markets represents a challenge but also one of our mayor strengths Still some uncertainty Market Recovering Brazil plays an important role in this picture Weak macro environment hurting Gasoline demand highly Ethanol vs. gasoline at the
Slide 45: Thank you
Innovative Technology Solutions for Sustainability ABENGOA Thank you August 28th, 2013