Abengoa Sa · OTC:AGOAF
Abengoa Sa — 9M 2015 Earnings Presentation
32 slides from Abengoa Sa's earnings presentation, Nov 13, 2015
Slide 1: First Nine Months of 2015 Earnings Presentation
Innovative Technology Solutions for Sustainability ABENGOA First Nine Months of 2015 Earnings Presentation November 13, 2015
Slide 2: Forward-looking Statement
Forward-looking Statement • This presentation contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) and information relating to Abengoa that are based on the beliefs of its management as well as assumptions made and information currentl
Slide 3: Agenda
Agenda 1 Q3´15 Highlights & Business Update 2 Financial Review 3 Financial Appendix 3
Slide 4: Q3'15 Highlights & Business Update
Agenda Q3´15 Highlights & Business Update 4
Slide 5: YTD Sep. 2015 at a Glance
YTD Sep. 2015 at a Glance Main financials impacted by uncertainty in the capital markets during Q3 2015 P&L Business KPI’s Balance Sheet & CF Revenues €4.9bn (4)% E&C Bookings €4.1bn +15% Corp Leverage 3.3x +0.8x 5,065 4,873 4,136 1.770 1.483 3,595 1.101 653 3.3x 1.753 1.831 1.442 1.333 1.542 1.559
Slide 6: YTD Sep. 2015 Highlights
YTD Sep. 2015 Highlights Long term business perspective intact, however capital market uncertainty impacting Q3 2015 E&C Slow-down in Q3, but backlog and pipeline remain strong • Healthy E&C backlog of 8.8 B€ driven by strong new bookings in the quarter Business • Strong momentum with significant ne
Slide 7: Business Highlights - E&C
Business Highlights - E&C Continued high margins and strong backlog and pipeline, albeit business slow-down in Q3 Engineering & Construction (M€) Revenues EBITDA & Margin • EBITDA margins driven by: (7)% +21% 3,117 609 2,913 Strong contribution of technology fees in Q1 504 159 1,035 754 Various Proj
Slide 8: E&C Pipeline - Details
E&C Pipeline - Details ~166 B€ of pipeline(1) opportunities diversified by sector & region T&D Pipeline 166.1 B€ 4% 13% 18% Conventional By Sector 16% Solar & Renew. Water Billion € 9% 40% Indust. Plants +1% Others 163.9 166.1 71% Turnkey Pipeline 117.6 B€ 66% 71% 11% North America 23% Europe Brazil
Slide 9: Business Highlights - Concessions
Business Highlights - Concessions EBITDA growth thanks to continued efficiencies; revenue decrease YTD due to ROFO’s in 2015 Concessions Abengoa Concessions (M€) Revenues EBITDA & Margin (7)% +5% 370 345 239 250 148 86 66 Q3 94 • Increased margins due to entry in 137 Q2 100 operation of new assets w
Slide 10: De-risking our business model
De-risking our business model Rebalancing our business mix towards turnkey projects Backlog Evolution Conversion to Revenues Highlights B€ Turnkey Projects 52% 1.8 3.5 Demonstrated strong track- 2.4 record in turnkey projects 2.3 1.7 Attractive margins due to EPC competitiveness & technology Dec
Slide 11: Business Highlights - Bioenergy
Business Highlights - Bioenergy Higher revenues with lower margins in Q3 due to market dynamics, namely in the US Bioenergy (M€) Revenues EBITDA & Margin • Lower margins in the US and Brazil +2% (81)% partially offset by higher crush spreads 1,578 1,614 991 164 in EU 972 587 642 80 Q3 Q2 10.4% 2.0%
Slide 12: Financial Review
ABENGOA Agenda 20 > Financial Review 12
Slide 13: YTD Sep. 2015 P&L Snapshot
YTD Sep. 2015 P&L Snapshot Net Income impacted by the mark-to-market of our stake in ABY as of Sep. 30, 2015 9m 2015 Performance (€ millions) 9m 2015 Y-o-Y Change Revenues 4,873 (4)% Raw Materials & Operating Cost /Income (3,976) (4)% 9m 2015 revenue decrease of 4% % of Sales 81.6% +44 Bp R&D (6) 81
Slide 14: Sep. 2015 Net Debt Overview
Sep. 2015 Net Debt Overview Expected net corporate leverage(1) of 2.6x after capital increase Post 9m’15 events Sept. 2015 Dec. 2014 Sep. 2015 X Net ROFO 4 & Adjusted Millions € Capital increase refinancing (partial) Corporate Debt 5,204 5,716 5,716 Corporate Guaranteed by Corporate Corporate Cash,
Slide 15: September 2015 Liquidity
September 2015 Liquidity Liquidity as of September 2015 impacted by WC outflows in Q3 Millions € • Availability of our liquidity: • 346 M€ immediately available cash 7 • 922 M€ tied in businesses, out of which: • 240 M€ APW-1 payment in STFI 922 escrow to be unlocked progressively on a project basis
Slide 16: YTD Sep. 2015 Corporate FCF
YTD Sep. 2015 Corporate FCF ~(412)M€ of working capital in Q3 excluding 177 M€ of cash linked to suppliers with no impact in cash immediately available and other adjustments 9m Q3 9m H1 2015 2014 2015 2015 Corporate EBITDA 599 463 158 621 Net Financial Income/(Expense) (393) (260) (159) (419) Taxes
Slide 17: Corporate & NRDP Debt Maturity Profile
Corporate & NRDP Debt Maturity Profile Managing our debt maturity profile efficiently Other Corp. Debt Bond Convertible Bonds ABY Exch. (2) Tranche A (post-refi) Commercial Paper NRDP Proforma (1) M€ 711 235 246 103 411 208 202 579 6 500 580 550 274 776 43 500 125 162 495 206 220 228 208 72 104 M€ Q
Slide 18: Main Takeaways
Main Takeaways Abengoa’s risk perception in the capital markets impacted liquidity Backlog and pipeline remain strong despite transitory slow-down in E&C business seen in Q3 Strategic actions in place to restore confidence and reinforce liquidity Agreement with Gonvarri Corporación Financiera for an
Slide 19: Financial Appendix
Agenda 3 Financial Appendix 19
Slide 20: 9m'15 Results by Activity
9m´ 15 Results by Activity Revenues EBITDA EBITDA Margin Millions € 9m’15 9m ‘14 Var (%) 9m ’15 9m ‘14 Var (%) 9m ’15 9m‘14 Engineering and Construction E&C 2,913 3,117 (7)% 609 504 21% 20.9% 16.2% Total E&C 2,913 3,117 (7)% 609 504 21% 20.9% 16.2% Concessions Solar 154 266 (42)% 107 182 (41)% 69.7%
Slide 21: Business by Region
Business by Region Continued business diversification with limited dependence on a single region Revenues by Region Weight (%) Y-o-Y Growth M€ Decrease in North 1.701 America due to South America 1.239 35% 24% +37% completion of Total Americas: large projects 1.385 +2% compensated with North America
Slide 22: Sep. 2015 E&C Backlog
Sep. 2015 E&C Backlog Stable E&C backlog at 8.8 B€ with an additional 5.3 B€ of O&M Engineering & Construction Backlog Backlog Evolution Conversion to Revenues B€ +11% 8.8 3.6 8.0 7.2 5.2 ~41% ~59% Mar'13 Dec.'14 E&C Sep.'15 2015 - 2016 2017+ E&C Sep’15 Backlog by Sector E&C Sep’15 Backlog by Region
Slide 23: Additional O&M Backlog
Additional O&M Backlog +5.3 B€ of O&M revenues expected for the next ~25years Significant revenues from O&M services for Very well diversified by sector and external projects during the next 25 years by region ~5.2 B€ 3%4% T&D 5.3 B€ 16% Renewable Conventional ~190M€ 52% 25% Water O&M Sep'15 2015 -
Slide 24: Consolidated Cash-flow
Consolidated Cash-flow Millions € 9m 2014 9m 2015 Profit for the period from continuing operations 101 (3) Non monetary adjustments & others 678 605 Profit for the period adjusted by non monetary adj 779 602 Operating Working Capital (783) (659) Activities Net Interest & taxes Paid (535) (666) Disco
Slide 25: Corp. Net Debt Bridge
Corp. Net Debt Bridge Adjusted corporate net debt of ~2.5 B€ proforma for capital increase Amounts in M€ 37 7 124 347 197 90 620 1,016 65 13 38 621 419 (3,237) (2,551) (2,353) Dec. Sep. Sep. 2014 2015 2015 PF 25
Slide 26: Consolidated Gross Debt at Sep. 30, 2015
Consolidated Gross Debt at Sep. 30, 2015 Gross Debt by Type Guarantees Amount (M€) Avge. Cost Corporate Debt 5,828 7.6% HY Bonds & Convertibles (ex-Greenbond) Corporate 3,232 Guaranteed by Corporate Syndicated Loan – Tranche A Corporate 684 Commercial Paper Corporate 228 Bilateral & multilateral loa
Slide 27: Zoom in Bridge Loans (NRDP)
Zoom in Bridge Loans (“NRDP”) 2.1 B€ of Bridge Loans(1) as of September 30, 2015 Uses & Sources Sources (€m) Uses (€m) Bridge Loan Info Long-term N/R Debt Value Source Guarantee Maturity Expec. closing date A Green Bond 544 Cash - A B EPC Sponsor Jul’15 – T&D Brazil 1,196 Dec’15 – Dec’17 C D & Corpo
Slide 28: Abengoa Concessions (I)
Abengoa Concessions (I) Concessions in Operation as of Sep. 30, 2015 Sector Asset Country ABG ownership COD Current EBV Chennai India 25% 2010 Tenes Algeria 51% 2014 84.9 Ghana Ghana 56% 2015 M€ Inapreu Spain 50% 2010 18.7 Other concessions Spain Spain 50-100% 2008 M€ Concecutex Mexico 50% 2010 ATE
Slide 29: Abengoa Concessions (II)
Abengoa Concessions (II) Concessions under Construction/Development as of Sep. 30, 2015 Sector Asset Country ABG ownership COD Current EBV Agadir Morocco 51% 2017 SAWS USA 45%* 2019 51.3 Zapotillo Mexico 100% 2017 M€ A3T Mexico 45%* 2017 A4T Mexico 45%* 2017 Nicefield Uruguay 45%* 2016 791.9 Hospita
Slide 30: Pending CAPEX by Project September 2015
Pending CAPEX by Project September 2015 Pending CAPEX Amounts based on the company´s best estimate as of Sep. 30, 2015. Actual investments or timing thereof may change. Abengoa Entry in Total ABG Net Capacity Country Partners Debt (%) Operation Investment Equity Capex Consolidated Concessions Capex
Slide 31: Asset Portfolio Capacity - Summary
Asset Portfolio Capacity - Summary Solid and diversified asset portfolio Extensive concessional asset base once current capex plan completed Solid producing assets Solar (MW) Transmissions (km) 2,343 Biofuels (Ml/year) 12,339 3,270 3,270 1,603 740 188 6.876 5,275 3.270 3.270 1.441 1.441 1.743 1.743
Slide 32: Thank you
Innovative Technology Solutions for Sustainability ABENGOA Thank you November 13, 2015