Abengoa Sa · OTC:AGOAF
Abengoa Sa — Debt Investor Presentation (March 2010)
39 slides from Abengoa Sa's debt investor presentation, March 2010
Slide 1: Credit Update
ABENGOA With the sun … we produce thermoelectric and photovoltaic electric energy Innovative Solutions for Sustainability Credit Update With biomass … we produce ecological biofuels and animal feed With waste … we produce new materials through recycling, and we treat and desalinate water With inform
Slide 2: Disclaimer
ABENGOA Disclaimer The information contained in this document has been provided by Abengoa, S.A. (“Abengoa”) . The information and any opinions or statements made in this document have not been verified by independent third parties, therefore, no representation or warranty, expressed or implied, is
Slide 3: Contents
ABENGOA Contents 1 Overview of Abengoa 2 Financial Performance 3 Key Credit Highlights 4 Capex Plan 5 Exhibits 3
Slide 4: Overview
ABENGOA Overview Business description Geographical distribution by revenues (2009) Africa Asia Leading global technology company in energy 3.4% 7.9% – Large operator of power transmission, water concessions, renewable energy and recycling assets Spain – Develops proprietary technology in solar pow
Slide 5: Main Drivers
ABENGOA Main Drivers From global trends… … to concrete business opportunities Solar power global installed capacity will be growing at 13% per year from 2010 to 2050 reaching 3,700 Mw (Greenpeace, “EREC Energy Revolution”) Increased Energy Demand - Demand expected to increase between 40% Biofu
Slide 6: Unique Business Model and Successfully Proven Strategy
Unique Business Model and ABENGOA Successfully Proven strategy 1 Unique Engineering 2 Asset owned operations capabilities …Allows to build Solar CSP (1) Power Transmission lines Scale through constructing Desalination government owned assets Biofuels and third parties Energy Largely regula
Slide 7: Corporate Structure - Committed and Experienced Management Team
Corporate Structure - Committed and ABENGOA Experienced Management Team ABENGOA Felipe Benjumea, Chairman & Amando Sánchez, CFO CEO CFO since 2003 CEO since 1989 Joined in 1998 ABENGOA ABENGOA BEFESA ABEINSA TELVENT SOLAR (100%) BIOENERGY (97%) (97%) (100%) (40%) Santiago Seage, CEO Javier Sal
Slide 8: Contents
ABENGOA Contents 1 Overview of Abengoa 2 Financial Performance 3 Key Credit Highlights 4 Capex Plan 5 Exhibits 8
Slide 9: Financial Performance Highlights
Financial Performance ABENGOA Highlights Sustained historical two-digits growth with increased margins, even in a very tough environment Sales (M€) EBITDA (M€) Net Income (M€) 7% :1 0% 1% % GR +1 4% 2 23 :2 CA + GR 7% : 4,147 4,147 170 170 GR A + 3 CA C 3,769 750 750 140 541 18,1% 18,1% 14,3% 866 10
Slide 10: Favorable Outlook
ABENGOA Favorable Outlook + 10 % Positive sales performance in 2009 vs 2008 ~30.6 bn€ Order backlog in concession activities (average life of 24 years) (1) ~7.6 bn€ Order backlog from contracting activities (32 months of sales) (1) < 30% Revenue diversification contribution of top 20 clients (1) As
Slide 11: Successful track-record in the banking and debt markets
Successful track-record in the ABENGOA banking and debt markets Excellent track record in capital markets – 200 M€ 6.875% 2014 Convertible Bond issued in June 2009 – 300 M€ 9.625% 2015 Euro Bond issued in November 2009 – 250 M€ 4.5% 2017 Convertible Bond issued in January 2010 Excellent reputati
Slide 12: Financial Model
ABENGOA Financial Model Balance of non-recourse Project Financing and Corporate Debt keeps financial discipline Non-recourse financing (NR) on a project by project basis: used to fund significant investments. Capex commitments are subject to availability of long-term funding. Corporate Debt (ex
Slide 13: Financial Model: Non-recourse Debt
Financial Model ABENGOA Non-recourse Debt Non-Recourse Debt Matched with cash-flow generation profile of projects and investments: - The long-term concession / commercial agreements (15 to 30 years) of project finance are suitable to higher leverage of such projects - Repayment instalments follow
Slide 14: Financial Model: Long Term Corporate Debt
Financial Model ABENGOA Long Term Corporate Debt Long Term Corporate Debt Credit facilities: - 1,800 M€ in three 600 M€ syndicated facilities (average pricing of E+67.5bps) due in 2011 and 2012: Santander, BNP Paribas, Societe Generale, ING, Citigroup, La Caixa, Caja Madrid as some of the MLA’s. -
Slide 15: Corporate Debt Refinancing Strategy
ABENGOA Corporate Debt Refinancing Strategy Abengoa Forward Start Facility (FSF) 1,533 M€ financing 2 year extension of July 2010 (266 M€) and July 2011 (1,266 M€) maturing Existing Facilities only; (2012 maturities will remain) Proposed pricing for banks agreeing to the extension: 275 bps until
Slide 16: Financial Model: Long Term Corporate Debt
Financial Model ABENGOA Long Term Corporate Debt Long Term Corporate Debt Committed to maintain our corporate debt ratio below 3x This is the only covenant of our corporate credit facilities, as agreed with our banks since 2002, an also incorporated in the covenant package of the 300 M€ February
Slide 17: Net Debt Analysis & Covenant
Financial Model ABENGOA Net Debt Analysis & Covenant Net Corporate Debt/Ebitda ratio well below 3x contractual limit (1) Major Adj (€ in Million) 31 Dec.09 .Jan10 & Febr10 Net debt (corporate) + Debt with credit institutions & leasings 2780 + Notes and Convertible bond 506 + Convertible bond due 201
Slide 18: Financial Priorities
ABENGOA Financial Priorities Reinforce Financial Structure: - Maintain Corporate Net Debt / Ebitda below 3x - Raise new equity at subsidiaries: • At Business Unit level: Befesa, Abengoa Solar, Abengoa Bioenergy • At Project level: through partnerships - Keep strong liquidity position (1,290 M€ as
Slide 19: Solid operating policy and tight audit controls
Solid operating policy and tight ABENGOA audit controls Adequate internal control systems in place to: - Monitor and evaluate business risk - Guarantee the accuracy of financial information Policy to hedge interest rates, FX and commodity price risks First European entity to undertake Sarbanes
Slide 20: Contents
ABENGOA Contents 1 Overview of Abengoa 2 Financial Performance 3 Key Credit Highlights 4 Capex Plan 5 Exhibits 20
Slide 21: In summary: Key Credit Highlights
ABENGOA In summary Key Credit Highlights 9 Well balanced, diversified and resilient business 9 Activities supported by solid market trends 9 Unique business model that boosts organic growth 9 Experienced and committed management team 9 Strong financial performance 9 Healthy and predictable backlog 9
Slide 22: Contents
ABENGOA Contents 1 Overview of Abengoa 2 Financial Performance 3 Key Credit Highlights 4 Capex Plan 5 Exhibits 22
Slide 23: Detail of committed capex plan
Detail of comitted capex plan ABENGOA Committed Capex Programme: 2,437 M€ - Non-recourse debt and partners: 1,727 M€ - Funds from Abengoa Corporate: 710 M€ 100% of non-recourse debt is committed in M€ as of 31 Dec 2009 Capex from Abengoa Entry in Abengoa Capacity (%) Country Operation Financing
Slide 24: Updated Capex Plan
ABENGOA Updated Capex Plan 10 new CSP projects awarded feed-in tariff in Spain; capex of ~2,500 M€ - Flexibility to build these projects over the next 3 years - Awarded, but not committed. Commitments as financing is secured o/w Capex from Abengoa Total Abengoa M€ Capacity (%) Location Status Cape
Slide 25: Sources & Uses of Capex Programme
ABENGOA Sources & Uses of Capex Programme Funding of the capex programme to be contributed from Abengoa Corporate is covered by existing cash and Corporate Ebitda generation: Committed Non-committed Total M€ Capex horizon 2010-2012 : 2,437 2,500 4,937 Financed by : - Committed Non-recourse debt
Slide 26: CSP projects
ABENGOA CSP projects Key highlights - Regulation: predictability in cash flows thanks to feed-in-tariff (Spain) - Proven technology: Parabolic trough solar power plants have been in existence for almost 50 years (Harper Lake Solar Funding Corp. rated BBB- / Baa2) - In-house experienced EPC contrac
Slide 27: CSP projects: Illustrative cash-flow profile
ABENGOA CSP projects Illustrative cash-flow profile for a 50 MW CSP plant EUR in millions year -1 -2 1 2 3 4 5 6 - 34 Construction Business a FCF from construction, development, equipment, technology fees… 20 20 Corporate & Operational Business b FCF from Management Fees and O&M Margins 1 1 1,25 1,3
Slide 28: Contents
ABENGOA Contents 1 Overview of Abengoa 2 Financial Performance 3 Key Credit Highlights 4 Capex Plan 5 Exhibits 28
Slide 29: Income Statement
Financial Performance ABENGOA Income Statement Financial highlights CAGR% M€ 2004 2005 2006 2007 2008* 2009 (04-09) Sales 1,746 2,024 2,677 3,214 3,769 4,147 18.9% EBITDA 180 216 288 384 541 750 33.0% EBIT 127 163 219 286 363 431 23.4% Net Interest 60 48 95 152 246 199 42.2% Net Income 52 66 100 120
Slide 30: Key Balance sheet data
Financial Performance ABENGOA Key Balance sheet data M€ 2004 2005 2006 2007 2008* 2009 Fixed assets 668 891 1,263 2,097 2,552 3,355 Fixed assets in non-recourse activities 491 682 1,146 1,638 2,292 3,623 Cash and short-term financial investments (mostly public debt repos and deposits) 563 815 1,510
Slide 31: Cash-Flow Statement split by Corporate / Non-Recourse
Financial Performance ABENGOA Cash-Flow Statement split by Corporate / Non - Recourse 2007 2008 2009 Non Non Non (€ in millions) Corporate recourse Total Corporate recourse Total Corporate recourse Total Gross Cash Flows 261 191 452 370 257 627 634 282 916 Intragroup eliminations -69 -86 -165 Ebitda
Slide 32: Detailed Debt Structure
Financial Model ABENGOA Detailed Debt Structure Corporate Consolidated Net debt: €1,257m Net debt: €4,191m Ebitda: €634m Preoperational: €2,373 Ebitda: €750m Operating cash-flow from corporate Corporate debt at Abengoa level (non project-finance entities) Op. cash flows Engineering and industrial co
Slide 33: Engineering Capabilities
1 Engineering Capabilities ABENGOA Engineering, For third procurement and For own assets Experience in the past five years Backlog (M€) parties construction of… CSP solar plants 31MW built; 300MW under 2,345 9 construction Renewable energy ISCC(2) solar plants 150MW + 470 MW under 218 9
Slide 34: Asset-owned operations
2 Asset-owned operations ABENGOA Concession Remarks Locations Assets revenues (M€)* First two commercial CSP towers Spain 41MW in operation 14,530 (1) Renewable energy Largest CSP plant in the world under US 300 MW under construction in development (280MW, Solana) Rest of World Spain
Slide 35: Technology development
3 Technology development ABENGOA Technology development as growth generator in the field of sustainability in Energy and Environment 90 M€ invested in R&D in 2008, ca. 2.2% of sales World pioneer in CSP solar technologies >900 people in R&D+i World leader in development of 2nd generation >
Slide 36: Corporate (ex Non-Recourse) Activities: Description and Ebitda Breakdown
Corporate (“ex Non-Recourse”) Activities ABENGOA Brief Description and Ebitda Breakdown Ebitda at Corporate entities (“Corporate Ebitda”) is growing rapidly based on solid drivers and large backlog Based on current backlog, we expect Corporate Ebitda to total 2.5 bn€ in the next 3 years (2010 –
Slide 37: Non-Recourse Projects: Nature of Revenues of Main Project Types
Non-Recourse Projects ABENGOA Nature of Revenues of Main Project Types Average remaining life of current Total life projects Characteristics Fixed price linked to inflation which is paid based on availability (no demand risk). Transmission The “off-taker” of the concessions is formed by a pool o
Slide 38: Order book at all-time high
ABENGOA Order book at all-time high ~30.7 bn€ Order backlog in concession activities (average life of 24 years) Order Backlog in concession activities (M€) 30,666 20,866 Q3 '09 2009 ~7.7 bn€ Order backlog from contracting activities (26 months of sales) Order Backlog from contracting activities (M€)
Slide 39: Corporate Debt
ABENGOA Corporate Debt Most of corporate debt is incurred by Abengoa SA: - represents 80% of total corporate debt - benefits from the upstream guarantee of main operating subsidiaries Corporate debt is backed by corporate assets of 3,355M€ and corporate EBITDA of 750 M€ December 09 Additionall