Acciona Sa · BME:ANA
Acciona Sa — Shareholder Meeting (June 2015)
54 slides from Acciona Sa's shareholder meeting presentation, June 2015
Slide 1: Annual General Meeting
Annual General Meeting Speech by José Manuel Entrecanales 1
Slide 2: Dear Shareholders
2015 Annual General Meeting Dear Shareholders, It is a pleasure to address you at this Ordinary General Meeting where we account the work completed and the results obtained over the past financial year and, above all, where I shall analyse the future prospects for our company. I am particularly plea
Slide 3: Perfect Storm and the Action Plan
2015 Annual General Meeting These serious issues addressed over the past years further augmented by other one‐off albeit relevant events for the group, such as the collapse of the property sector, the abrupt and sudden exit of the Bestinver management team last year, or the drastic reduction of carg
Slide 4: Outlook for the group is optimistic
2015 Annual General Meeting At this time with all due prudence, I can however affirm that the outlook for the group is optimistic, for our main businesses in Energy and Infrastructures and also for other activities with a smaller relative size but which also contribute significantly to the group’s r
Slide 5: Infrastructure needs and energy reform impact
2015 Annual General Meeting As for infrastructures, I will review how the increase of world population and the ever‐growing demand for better quality of life in developing countries, and also the ageing of infrastructures in the developed world and, quite often, their inefficiency as regards emissio
Slide 6: Overcoming the adjustment period
2015 Annual General Meeting However, fortunately, we are satisfied to say that we have overcome this hard adjustment and reorganisation period recovering our economic solvency and reinforcing our international position. All of this was achieved thanks to the effort, involvement and the commitment of
Slide 7: Action Plan measures and 2014 results
2015 Annual General Meeting (iv) the reduction of compensation paid to senior management by 32% in respect of the previous year, and by 27% in respect of the average for the past three years; (v) the transformation of the sources of corporate financing of the group from predominantly bank‐related so
Slide 8: 2014 EBITDA and net income
2015 Annual General Meeting Gross operating results or EBITDA stood at 1,087 million euros, up 2.4% over last year’s results. Net attributable income became positive, with a figure of 185 million euros, clearly contrasting the losses of ‐1,972 million euros in 2013, mainly due to impairments relatin
Slide 9: Solid balance sheet and share price rise
2015 Annual General Meeting Acciona is today a company with a solid balance sheet, an enviable position in industries with a recognised growth potential and whose positive development has been recognised by the market with a 64% increase in our share price from January 2014 until yesterday’s market
Slide 10: Prospects and climate change
2015 Annual General Meeting Having reviewed the main financial magnitudes of the preceding financial year and the degree of attainment of the goals set out in our Action Plan, I would now like to turn your attention to the prospects of the group for 2015 and the years thereafter that, as I said, are
Slide 11: G7 agreement and COP21
2015 Annual General Meeting Fortunately and surprisingly, as I said at the beginning of my speech, the G7 agreement announced last Monday on preventing global warming from exceeding two degrees centigrade is a huge backing for the targets of COP21 as it is a commitment for the group of the richest g
Slide 12: Carbon pricing and renewables growth
2015 Annual General Meeting In line with the above, one of the main proposals is putting a price tag on CO2 emissions as a tool to discourage them and incentivise reduction. In short, the goal is to apply the basic and obvious principle that “he who emits the most should pay the most”. As regards th
Slide 13: Energy positions in growth markets
2015 Annual General Meeting To achieve this, we have a solid position in long‐term fundable regions, with stable regulatory frameworks and large energy needs. Noteworthy are Mexico, Chile, India, South Africa, Brazil, Turkey or Morocco as high growth markets for future years, either for own projects
Slide 14: Windpower turnaround and infrastructure trends
2015 Annual General Meeting Our extensive experience in this sector – I daresay one of the lengthiest amongst all operators and developers worldwide – undoubtedly heralds a bright future and significant value for our assets in the long‐term. For that matter, a highlight here is the most significant
Slide 15: Infrastructure regions and strategic countries
2015 Annual General Meeting Our regions and strategic countries are already identified and act as a platform for new markets. In Europe, we see opportunities in transport in Central Europe and Scandinavia, where we have just been awarded a contract for the most emblematic railway works in Norway. We
Slide 16: Turnaround of Bestinver and other businesses
2015 Annual General Meeting All of the above is proof of our ability for technically‐complex contracts with high added value on a global level without shifting the focus from risk control and profitability. To round off the review of outlooks by sectors and activity lines of the group, I wanted to n
Slide 17: Trasmediterránea and Acciona Inmobiliaria
2015 Annual General Meeting As far as Trasmediterránea is concerned, following an intense internal restructuring process, the optimisation of lines and the fleet, reduction of operating costs and the deleveraging of the balance sheet, we have transitioned from a scenario of a company in serious diff
Slide 18: Capital markets access and closing remarks
2015 Annual General Meeting As I said above, both the property and energy businesses could be candidates for independent access to capital markets, although this process is currently subject to an internal analysis and it is still too early to provide any conclusions. Dear shareholders, as I said at
Slide 19: Closing thanks
2015 Annual General Meeting If we are capable of keeping on track and surmounting the many obstacles that the future may bring, we will have fulfilled our commitment and we will have continued the transition of a company founded almost a century ago towards another company with the ability to contin
Slide 20: Annual General Meeting
2015 Annual General Meeting
Slide 21: Reduction of gross annual investment
2013-2014 Action Plan Reduction of gross annual investment €1,174m €854m -67% €339m €340m 2011 2012 2013 2014
Slide 22: Sale of assets and entry of shareholders
2013-2014 Action Plan Sale of assets and entry of shareholders (€1,000m) ~€1.0bn ~€0.4bn ~€0.1bn ~€0.2bn ~€0.3bn Renewable Concessions Other KKR Total Alliance/ divestments divestments divestments Alliance Asset Rotation
Slide 23: Operative expenses contention
2013-2014 Action Plan Operative expenses contention -€70m 2013 2014
Slide 24: Reduction of senior management compensation
2013-2014 Action Plan Reduction of compensation paid to senior management -32% -27% 2013 2014 2011-13 2014
Slide 25: Transformation of sources of corporate financing
2013-2014 Action Plan Transformation of sources of corporate financing 2013 2014 23% 25% 77% 75% Bank debt Capital markets
Slide 26: Removal of the dividend
2013-2014 Action Plan Removal of the dividend paid against 2013 results €191m €152m €115m* 2011 2012 2013 2014 *Pending approval in General Meeting
Slide 27: Group's turnover
Group’s turnover +3.6% €6,499m €6,271m 2013 2014
Slide 28: Group's EBITDA
Group’s EBITDA +2.4% €1,087m €1,062m 2013 2014
Slide 29: Net attributable income
Net attributable income €185m 2013 2014 -€1,972m
Slide 30: EBITDA Energy
EBITDA Energy EBITDA by division €854m -8% €788m ~75% Energy Energía Infrastructures Infrastructuras 2013 2014 Other actividades Otras activities
Slide 31: EBITDA Infrastructures
EBITDA Infrastructures Construction backlog +43% €173m €121m 64% Internacional International 2013 2014 Nacional National
Slide 32: EBITDA Other activities
EBITDA Other activities €126m +44% €87m 2013 2014
Slide 33: Net financial debt
Net financial debt NFD/EBITDA 5.7x 4.9x €6,040m -12% €5,294m Target level 4.5x Dec 2013 Dec 2014
Slide 34: Share evolution 2014 – 2015YTD
Share evolution 2014 – 2015YTD 180% 170% 160% ACCIONA 150% +64% 140% 130% Ibex-35 +12% 120% 110% 100% 90% dic ene feb mar abr may jun jul ago sep oct nov dic ene feb mar abr may 2014 2015YTD
Slide 35: Analysts consensus 2014 – 2015YTD
Analysts consensus 2014 – 2015YTD Jan 2014 Jun 2015 10% Buy/Hold 40% 60% Sell 90% €80 share Closing price +17% upside 10/06/15: €69 share €40 share Jan 2014 Jun 2015 Recent consensus analysts Jan 2014: Fidentiis, Deutsche Bank, Exane BNP, Macquaire, BoAML, N+1, Goldman Sachs Recent consensus analyst
Slide 36: Restart payment of dividend
Restart payment of dividend €3/sh €2.65/sh €0/sh €2/sh €191m €152m €115m* - 2011 2012 2013 2014 ~60% * Pending AGM approval payout
Slide 37: Climate change – Arctic deicing evolution
Climate change – Artic deicing evolution
Slide 38: G7 summit (Germany) – June 2015
G7 summit (Germany) – June 2015
Slide 39: COP21
COP21 Common quantitative target to reduce greenhouse effect gases by 2050 and to reach a level of net emissions of zero by the end of the century The assignment of resources to adjustment of infrastructures to decarbonisation and the protection of natural resources absorbing emissions Fostering low
Slide 40: Gunning wind farm, Australia
Gunning SPV plan Amaraleja, wind farm, Australia Portugal (45.8MW) (86 Wind farm MW)Australia (86 MW) Gunning,
Slide 41: CSP plant Palma del Río II, Spain (50 MW)
CSP plant Palma del Río II, Spain (50 MW)
Slide 42: Wind farms Oaxaca, México (306 MW)
Wind farms Oaxaca, México (306 MW)
Slide 43: Wind farm Cathedral Rocks, Australia (66 MW)
Wind farm Cathedral Rocks, Australia (66 MW)
Slide 44: Wind farm Red Hills, USA (123 MW)
Wind farm Red Hills, USA (123 MW)
Slide 45: Wind farm El Perdón, Spain (20 MW)
+98% availability 100,0% 99,8% 99,6% 99,4% 99,2% 99,0% 98,8% 98,6% 98,4% 98,2% 98,0% 97,8% 97,6% 97,4% 97,2% 97,0% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Wind farm El Perdón, Spain (20 MW)
Slide 46: AW3000 Turbine (3MW)
AW3000 Turbine (3MW)
Slide 47: Refocus of infrastructures towards a sustainable model
Refocus of infrastructures towards a sustainable model
Slide 48: Hydric stress
Hydric stress
Slide 49: Kugira and tunnel boring machine Northern Link
Kugira and tunnel boring machine Northern Link
Slide 50: Northern Link tunnel, Australia
Northern Link tunnel, Australia
Slide 51: Bridge on highway A30 over Beauharnois channel, Canada
Bridge on highway A30 over Beauharnois channel, Canada
Slide 52: Water treatment plant Atotonilco, Mexico
Water treatment plan Atotonilco, Mexico
Slide 53: Desalination plant Adelaide, Australia
Desalination plant Adelaida, Australia
Slide 54: Annual General Meeting
2015 Annual General Meeting