Abengoa Sa · OTC:AGOAF
Abengoa Sa — Non-Deal Roadshow (July 2013)
37 slides from Abengoa Sa's roadshow presentation, Jul 30, 2013
Slide 1: Innovative Technology Solutions for Sustainability
Innovative Technology Solutions for Sustainability ABENGOA Corporate Update July 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: Agenda
Agenda 1 Key Update 2 Company Overview 3 Financial Highlights 4 In Summary 3
Slide 4: Agenda: Key Update
Agenda 1 Key Update 2 Company Overview 3 Financial Highlights 4 In Summary 4
Slide 5: What We Do
What We Do… We focus our growth on the development of new technological solutions that contribute to sustainability in… Renewable Power Water Treatment & Generation Desalination Power Transmission & Distribution Biofuels …providing Complete Solutions based on our: Conventional Power Generation • Cut
Slide 6: Continued Business Momentum
What’s New since Q1 2013… 1 Excellent bookings in Q2 will drive Backlog to >7B€ T&D lines in Brazil CSP Plant in Israel Portland Gen. Electric E&C Continued Momentum 1.3 B$ 425 M$ 364 M$ 2 Continued Next assets entering into operation as expected, no delays Business Q2’13 Q3’13 Q1’13 Qingdao Momentu
Slide 7: Solid Business Momentum
Solid Business Momentum Continued building momentum in Q2 with significant new awards… ABG Equity Customer Country Value Scope 2014-2016 Engineering, construction, maintenance & Transmission Brazilian National Electricity Agency $1.3 B operation of various transmission lines totaling ~$107 M Lines 2
Slide 8: No Additional Impact for Abengoa: New Solar Regulation Reform
New Solar Regulation Reform Government officially announced a new electric regulation reform in Spain on Jul. 12. Not expected to have a negative impact to our Solar business New Legal Frame… Tariff for Renewables… Certainty in the future… • Guarantee financial balance 10y Spanish 300 New tools to a
Slide 9: Bioenergy Outlook
Bioenergy Outlook US Crush Spread 2012 & 2013YTD EU Crush Spread 2012 & 2013YTD $/GAL €/m3 Crush spreads increasing in 2013 0,90 250,00 Crush spreads increasing in 2013 0,75 200,00 0,60 150,00 0,45 100,00 0,30 0,15 50,00 Ethanol Stocks RIN’s Price Evolution USD Current inventories below 2012 levels
Slide 10: 1G vs 2G Ethanol Margin Analysis
1G vs 2G Ethanol Margin Analysis Current Corn Level $2,00 (6.50 -7.50 $/bus) $1,80 $1,60 Crush Margin $1,40 $1,20 $1,00 $0,80 $0,60 $0,40 $0,20 $0,00 $4,00 $4,50 $5,00 $5,50 $6,00 $6,50 $7,00 $7,50 $8,00 Corn Prices ($/bus) Hugoton Op Margin w/ 65c $/GAL incentive CS US - 1G Hugoton Op Margin w/ no
Slide 11: Use of Proceeds from Recent Transactions
Use of Proceeds from Recent Transactions Issuance of 650 M€ debt at corporate level and sale of recycling business Proceeds Uses 1 • Repurchase 100M€ of 2014 Conv. Notes in Q1’13 Issuance of 400 M€ convertible • Repurchase 65 M€ of other loans in Q1’13 bond due 2019 • Repay 208 M€ of the Syndicated
Slide 12: Reduced CAPEX Plan
Reduced CAPEX Plan Strong commitment towards corporate CAPEX reduction Corporate CAPEX Evolution € Millions 1.189 870 817 750 Max 450 M€ Includes ~130 M€ of R&D and 270 279 Maintenance CAPEX 2010 2011 2012 2013E 2014E 2015E EPC Margin ≥ Equity Contribution to projects Ending CAPEX intensive phase to
Slide 13: Reduced Equity Contributions in Projects
Reduced Equity Contributions in Projects Proven technology and track record of building & operating assets allows Abengoa to minimize future equity contribution to projects Track-record of Reduced Equity execution in the last Proven Technology Contributions in decade Projects +7 GW installed capacit
Slide 14: Effective Maturity Management
Effective Maturity Management Significant extension of average life of corporate debt vs previous years As of March 31, 2013 Syndicated Loans Other corp. debt Expected repayment of Syndicated Loan & Other Corp. Bonds Convertible Bonds Debt with remaining 2013 bond issuances proceeds Corporate Debt M
Slide 15: Strong Discipline to Achieve Sustainable Growth
Strong Discipline to Achieve Sustainable Growth Increased risk management tools and discipline to allow for sustainable growth and achievement of targets 1 Reduce Net <3.0x in 2013 Our Plan to Generate Corporate Leverage <2.5x from 2014 Corp. Free Positive Cash Flow Corporate 2 Reduce Corporate FCF
Slide 16: 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 Reduce CAPEX +500 M€ of performance from additional annual. Resilient E&C Mojave & Hugoton EBITDA from new lowest ever business: >7 B€ in operation concessions Backlog, provi
Slide 17: Agenda: Company Overview
Agenda 1 Key Update 2 Company Overview 3 Financial Highlights 4 In Summary 17
Slide 18: ABENGOA at a Glance
ABENGOA at a Glance We are an international company that applies innovative technology solutions for sustainability in the energy and environment sectors Q1’13 Revenues 2 Geographically 1,850 M€ Diversified – Q1 2013 Revenues High growing sectors Energy & Environment EU 12% USA Spain Asia & 7.8 B€ 2
Slide 19: How We Do it
How We Do it… Technology Focused E&C • 4.5 B€ revenue in FY2012 • +12% EBITDA margin (+16% incl. Technology) • An international leader in power generation & transmission • Excellent execution, proprietary know-how & technology Upside from backlog growth globally Asset Based Operations Concessions In
Slide 20: An Integrated Business Model
An Integrated Business Model Integrated business model allowing to reduce execution risk & successfully compete across the full project spectrum (EPC, O&M & Concessions) Development Portfolio Management ABENGOA EPC Asset Based Asset Solutions Operations Rotation Technology, Design, Concessions & Ind
Slide 21: An Integrated Business Model: Competitive Advantage and Returns
An Integrated Business Model Abengoa’s integrated business model leads to competitive advantage and attractive returns Opportunistic asset 2 Returns in an asset based model rotation 1 Returns in Equity Return E&C business T + EPC* Concession Concessions EPC & Ind. O&M** O&M Asset Rotation Asset Rota
Slide 22: Technology Leadership
Technology Leadership Abengoa’s technology provides innovative solutions that enable continued growth and market leadership Super Heated Reverse 2G Enzymatic Proven Proprietary Tower & Large Osmosis Hydrolysis Technologies in Storage Systems Commercialization Phase… South Africa 50 MW Honaine 200 ML
Slide 23: Solid Track Record of Growth & Value Creation
Solid Track Record of Growth & Value Creation A story of growth and value creation driven by excellent project execution and technology leadership Revenues & YoY Growth 7.783 EBITDA & Margin 1.246 7.089 1.103 CAGR ‘05-’12 CAGR ‘05-’12 EBITDA Margin (%) YoY Growth (%) Revenues (M€) +21% +28% EBITDA (
Slide 24: Excellent Track Record of Project Execution
Excellent Track Record of Project Execution Continued Execution of Projects Complying with Original Budget, Schedule and Performance Discipline at Discipline in Exhaustive Risk 1 2 3 Bidding phase Execution Management 4 Success Story of Project Execution +16 B€ E&C projects executed in the last 5 ye
Slide 25: Business & Revenue Visibility
Business & Revenue Visibility Increased pipeline & backlog provides future visibility Power 42% Latam 32% March ’13 Pipeline Water 29% Asia-Pac 21% E&C T&D 16% USA 15% Pipeline 99,338 M€ Others 9% Europe 15% Spain 5% Ind. Plants 4% ME&A 12% Estimated Conversion to Revenues M€ Rest ‘13e 2014e 2015e+
Slide 26: Moving Towards Our New Phase of Sustainable Growth
Moving Towards Our New Phase of Sustainable Growth Transformation from a pure E&C company to a global integrated sustainability player poised for sustainable growth E&C know-how Assets investment Sustainable growth 2015 Forward Positive corporate FCF Strong R&D commitment Organic deleverage
Slide 27: Agenda: Financial Highlights
Agenda 1 Key Update 2 Company Overview 3 Financial Highlights 4 In Summary 27
Slide 28: Financial Highlights
Financial Highlights P&L Highlights Balance Sheet Highlights 7.8 B€ 2.9x -0.3x Revenues in 2012, an Corporate Leverage ratio increase of 10% Y-o-Y as of Mar.’13 1.2 B€ 2.4 B€ -4.5% EBITDA in 2012, 16% Corp. Net Debt as of margin Mar.’13 +28% 273 M€ -11% EBITDA CAGR in the Equity CAPEX invested 2005-
Slide 29: Well Diversified Globally
Well Diversified Globally… The U.S. has become our #1 market in terms of revenues Q1 2013 Revenues 1,850 M€ Rest EU 6% 12% USA 9% 28% Spain 60% 19% Asia 2% 6% Africa Latam 1% 11% 22% 24% FY Q1 2002 2013(1) Growing in a Diversified Way with Business in the US Being the Largest Contributor in the Mix
Slide 30: Reduced CAPEX Plan
Reduced CAPEX Plan A reduced equity contribution to projects will not jeopardize our sustainable growth going forward € millions 2013 2014 2015 Target CAPEX 750 M€ 450 M€ 450 M€ R&D & Est. Yearly R&D investment ~100 ~80 ~80 Mainte- nance Maintenance Yearly CAPEX ~50 ~50 ~50 Q1 2013 ABG Equity Invest
Slide 31: Great Value from Future Projects
Great Value from Future Projects As of March 31 , 2013 Ann. Abengoa (Equity Expected Fully Location Capacity Ownership %) 2013 2014 2015 2016 EBITDAe Start Up Funded? (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 Tower Sou
Slide 32: Reinforced Capital Structure
Reinforced Capital Structure Liquidity protection & management of corporate leverage: key priorities Dec. 2012 March 2013 As Reported Restated(1) March 2013 Proforma(2) Corporate Debt 4,758 4,757 5,055 5,055 Net Corporate Corporate Cash, Equiv. & STFI (2,275) (2,271) (2,681) (3,120) Debt Total net c
Slide 33: Key Leverage Ratios
Key Leverage Ratios Corporate Leverage Ratio within our Target Dec. 2012 March 2013 As Reported Restated As Reported Proforma* Corporate 3.2x 3.2x 2.9x 2.3x Non-Recourse 12.1x 9.7x 15.3x 15.3x Consolidated 6.6x 5.6x 6.3x 6.0x (excl. pre-op. debt) 3.2x 3.1x 3.3x 2.9x 33 *Pro-forma magnitudes includes
Slide 34: Liquidity Position to face commitments over 2013/2014
Liquidity Position to face commitments over 2013/2014 Need for an adequate liquidity position to maintain our competitive position • Cash balance needed to maintain competitive position (performance bonds, …) • Liquidity required to face commitments: CAPEX, interests, debt,... • Ability to face seas
Slide 35: Agenda: In Summary
Agenda 1 Company Overview 2 Our Strengths 3 Financial Highlights 4 In Summary 35
Slide 36: In Summary
In Summary… Market leading position in sustainability across the … spanning attractive energy & environment end markets poised for sectors… continued growth… • Global Player of with Technological • Exposed to Positive Macro Trends Innovative Solutions • Strong Pipeline of identified • Blue Chip Recu
Slide 37: Thank you
Innovative Technology Solutions for Sustainability ABENGOA Thank you